The Executive Director of the Africa Centre for Energy Policy (ACEP) Benjamin Boakye has called for immediate action to address Ghana’s energy sector Crisis.
According to him, the energy crisis in Ghana has reached a critical point.
In a candid conversation with Alfred Ocansey on Keypoints on January 11, Boakye explained the depth of the sector’s issues and why immediate action is necessary to avoid further strain on the country.
For years, the Electricity Company of Ghana (ECG), a state-owned utility, has been at the center of the crisis.
“The ECG has been the main player in the inefficiencies of the energy sector,” Boakye said.
The company has been unable to attract private investments, forcing the government to continuously bail out the sector with public funds.
While some efforts were made to address the challenges between 2014 and 2015, political interference and failed initiatives, such as the Power Distribution Services (PDS) deal, have only worsened the situation.
“While privatization of ECG could be a viable option, it needs to be handled carefully to ensure long-term benefits. The government must act decisively to resolve the structural inefficiencies that have plagued the sector for far too long,” he stated.
In 2017, the energy sector was saddled with a debt of 2.5 billion dollars, and by 2023, that debt had skyrocketed to 14.5 billion dollars.
The downstream sector has also struggled with the inability to adjust fuel prices in response to market changes, leading to the accumulation of substantial debt.
Despite temporary relief provided by external factors, such as the Russia-Ukraine war preventing costly LNG projects, the underlying inefficiencies continue to hamper the sector’s growth.
The government has already paid 3.7 billion dollars to the energy sector, funds that could have been better allocated to other areas of national development, such as education or infrastructure.
“The energy sector needs urgent reform,” Boakye stressed.
Boakye’s message is clear: Ghana’s energy sector has immense potential, but it will only reach its full potential if the government stops making short-term fixes and starts implementing long-term solutions.
With the right leadership and technical expertise, Ghana’s energy sector can overcome its challenges and contribute to the country’s broader development goals.
By Christabel Success Treve
