Energy sector debts to be settled by 2026 – President Mahama

President John Dramani Mahama has committed to resolving Ghana’s energy sector debt by early 2026. Speaking at a forum in Ivory Coast, he expressed confidence that the country’s $2.5 billion debt to independent power producers and gas suppliers would be addressed within the next year.

As of December 2024, the Energy remained in a GH₵70 billion debt despite receiving over GH₵45 billion in Energy Sector Levies (ESLA). A situation that is currently threatening stable power supply in the country.

President Mahama has outlined several measuresto improve efficiency and reduce commercial and technical losses.

He mentioned the establishment of a single revenue collection account, enforcement of the Cash Waterfall Mechanism (CWM) to prioritize debt payments, and elimination of wasteful expenditures within state utilities. Additionally, the government plans to involve the private sector in metering and billing

“The energy sector has been number one in terms of priority. On my second coming, we met a messed-up energy sector with debts of almost 2.5 billion owed to Independent Power Producers, to gas suppliers, and everybody,” President Mahama said.

“And so what the previous [government] started, we are continuing. We have been trying to renegotiate the debt and see how we can ring fence it. We have some strategies for dealing with it.

“By the end of the year, early next year, we should be able to make everybody happy in terms of dealing with that debt,” he added.