Ghana's energy sector is on the brink of collapse, and President-elect John Dramani Mahama is sounding the alarm. In a recent meeting with Canada's High Commissioner to Ghana, Myriam Montrat, Mahama emphasized the need for urgent and comprehensive reforms to address the sector's numerous challenges.
The energy sector's frailty poses a significant threat to Ghana's economic stability, and Mahama's administration has pledged to prioritize reforms aimed at achieving efficiency, sustainability, and reliable energy supply for all citizens. The President-elect's warning is clear: "The energy sector needs urgent surgery; otherwise, it can collapse everything."
Mahama's concerns are rooted in the sector's substantial unresolved debt burden, which he believes is evidence of poor management by the outgoing administration. With a $2.5 billion debt looming, Mahama questioned the credibility of the current government's claims of economic improvement.
The unresolved energy sector debt is a potential economic ticking time bomb, and Mahama warned that it could negate any progress achieved. He also suggested that the government's optimistic economic narrative is misleading and designed to bolster its image before leaving office.
Ghana's energy sector has been facing significant challenges, including under-recoveries in the power sector, which undermine the country's economic development. The sector's decline in production signals the urgent need for policy and regulatory reforms to encourage investment.
To address these challenges, Mahama's administration plans to prioritize reforms aimed at achieving efficiency, sustainability, and reliable energy supply for all citizens. This includes implementing the Energy Sector Recovery Programme (ESRP), which aims to improve the financial and operational performance of the energy sector.
As Ghana prepares for a new administration, the energy sector's challenges must be addressed urgently. Mahama's call for reforms is a step in the right direction, and it is essential that his administration follows through on its commitments to ensure a sustainable and reliable energy supply for all Ghanaians.
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