The Minister for Energy and Green Transition, John Abdulai Jinapor, has raised serious concerns about the growing debt crisis within Ghana’s energy sector, warning that urgent intervention is necessary to prevent its collapse. He pointed out that the continued accumulation of financial liabilities poses a severe risk to the sector’s sustainability, urging stakeholders to implement drastic measures to address this crisis. During a discussion with Civil Society Organisations (CSOs) in Accra, Mr. Jinapor revealed that the total debt in the energy sector has reached an alarming GH¢80 billion, with the Electricity Company of Ghana (ECG) alone responsible for over GH¢60 billion. This, he emphasized, is an unsustainable situation that requires immediate action. He called for innovative financial solutions to stabilize the industry, stressing the need for collaboration between the government and CSOs to ensure long-term economic stability.
One of the key challenges contributing to this financial crisis, according to the minister, is inadequate funding for the sector. He highlighted the importance of mobilizing resources to support the energy industry while also addressing inefficiencies that have worsened the situation. Mr. Jinapor believes that the involvement of CSOs and other relevant stakeholders in finding sustainable solutions is crucial. He assured them that the government is fully committed to revitalizing the sector, implementing reforms that will ensure efficiency, and guaranteeing that Ghanaians continue to receive reliable energy services. His remarks come at a time when concerns about the sector’s financial health have intensified, with experts warning that continued neglect could lead to major disruptions in power supply and economic setbacks.
Despite the challenges, the minister reaffirmed the government's determination to implement policies that will restore stability to the energy sector. He emphasized that addressing these financial difficulties is a top priority, as the long-term viability of Ghana’s energy infrastructure depends on effective debt management and sustainable investment strategies. Moving forward, stakeholders must work together to explore ways to enhance revenue generation, improve operational efficiency, and secure alternative funding sources. The government’s approach to tackling these issues will play a significant role in shaping the future of the sector, ensuring that it remains resilient and capable of supporting Ghana’s economic growth.
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