Ghana has taken a decisive step to stabilise its electricity sector by settling energy-related liabilities amounting to 1.47 billion US dollars in 2025. Authorities say the move has removed a major source of financial stress from the power industry and helped rebuild confidence among international partners and investors.
For years, unpaid obligations across the energy value chain had raised concerns over supply reliability and discouraged new investment. The government now says the full clearance of these arrears represents a structural reset rather than a temporary fix.
Restoring Confidence in the Power Sector
A substantial share of the payments was directed toward reactivating an international risk guarantee that had previously been fully drawn down. This instrument had been central to attracting large-scale private financing for offshore gas development, and its restoration is expected to reopen access to long-term capital for future projects.
Officials describe the reinstatement as a signal to global investors that Ghana is serious about honouring its commitments and maintaining a predictable operating environment for energy ventures.
Suppliers Paid, Arrears Closed
The settlement programme also covered unpaid gas supply bills owed to key energy partners, bringing an end to disputes that had lingered for years. In parallel, the government cleared historical obligations to independent power producers, including floating and land-based plants that form a critical part of Ghana’s electricity mix.
By closing these accounts, authorities say they have removed a persistent risk to power generation, as producers had previously faced uncertainty over compensation for electricity supplied to the grid.
New Approach to Sector Management
The government completed the debt clearance within its first year in office, presenting it as evidence of a broader change in how the energy sector is managed. Officials say new budget controls and revised contractual terms are designed to prevent the re-emergence of arrears and ensure payments remain current going forward.
At the same time, efforts are being made to boost domestic gas availability, which could lower generation costs and reduce exposure to external supply shocks.
Power Stability and Economic Impact
Reliable electricity is widely viewed as a foundation for economic growth, particularly for industry and small businesses. Government officials argue that removing financial bottlenecks in the energy sector will help improve service delivery and support wider development goals.
While challenges in the power sector have not disappeared, authorities say the large-scale debt settlement marks the end of chronic payment delays. The focus, they add, is now shifting toward sustainability, efficiency, and long-term resilience of Ghana’s electricity system.
