Energy Minister-Designate John Abdulai Jinapor has expressed deep concern over the escalating debt burden in Ghana’s energy sector, calling it a pressing issue that demands immediate attention.
Speaking during his vetting before Parliament’s Appointments Committee on January 13, 2025, Mr. Jinapor disclosed that the energy sector’s debt had surged to over $3 billion as of January 12, 2025.
“The debt stood at $2.1 billion when we left office in August 2017. As of yesterday, January 12, 2025, the debt has exceeded $3 billion,” Mr. Jinapor revealed.
A key contributor to the rising debt is the government’s financial obligations to Independent Power Producers (IPPs), which amounted to $1.2 billion as of October 2024.
He also highlighted inefficiencies, such as unaccounted-for power sales, further exacerbating the sector’s financial woes.
Mr. Jinapor stressed the need for pragmatic and sustainable solutions to resolve the debt crisis, ensuring the energy sector remains viable while protecting Ghana’s broader economic stability.
He urged robust financial management practices and comprehensive reforms to tackle the mounting liabilities, restore investor confidence, and enhance the sector’s operational efficiency.
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