The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has raised concerns about the dire state of Ghana’s energy sector, describing it as a sector “systematically decimated” by mismanagement and inefficiencies.
In an opinion piece addressed to President-elect John Mahama, he outlined critical challenges requiring immediate action to prevent further economic destabilization.
“The energy sector has been systematically decimated, enriching a few while the public bears the burden through the budget, levies, and high margins,” he wrote.
He revealed that the sector wastes over GH¢50 billion annually—an amount that dwarfs the nation’s annual oil revenue—and poses a significant risk to economic stability.
One of the most glaring issues, according to Benjamin Boakye, is the bloated structure of energy agencies and companies.
“The energy sector is riddled with agencies and companies that are 4-5 times larger than what is needed to perform the same work as eight years ago,” he noted.
This overstaffing, fueled by political appointments, has created redundant directorates and unnecessary institutions, increasing the public’s financial burden.
Another pressing issue is the deteriorated state of the Electricity Company of Ghana (ECG), which has become a major drain on the national budget.
Benjamin Boakye lamented, “Politicians have mismanaged it to the point where it has become the single largest dependent on the national budget.”
This mismanagement, coupled with procurement abuses and exchange rate manipulations, threatens the upstream oil and gas sector, making gas payments to investors uncertain.
Benjamin Boakye also highlighted waste in the downstream petroleum sector, which imposes inflated margins on the public to sustain political interests.
He identified over GH¢6 billion in what he termed the “black tax,” which, if redirected, could address pressing development needs.
He warned of the declining upstream oil and gas sector, calling for urgent measures to restore investor confidence.
“We are witnessing its decline unfold before our eyes,” Benjamin Boakye stated, adding that strategic action could unlock $2 billion in investments by 2025, out of a potential $6 billion in the medium term.
He emphasized that fixing the energy sector requires a “surgical examination” and urged President-elect Mahama to act decisively to restore order and efficiency.
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