Ghana's Energy Sector on Brink of Collapse, Needs 'Urgent Surgery' - President-elect Mahama

Ghana's President-elect, John Dramani Mahama, has sounded the alarm on the country's energy sector, warning that it requires immediate and comprehensive reforms to prevent a catastrophic collapse.

Mahama's concerns echo those of energy experts, who point to the sector's fragile condition and its potential impact on Ghana's economic stability.

The energy sector's woes are multifaceted, with a significant debt burden and inefficient supply chain contributing to the crisis.

During a courtesy visit by the Canadian High Commissioner to Ghana, Myriam Montrat, in Accra, Mahama  criticized the current administration's rosy portrayal of economic recovery, arguing that the unresolved debt could undermine any progress made.

"The energy sector needs urgent surgery," Mahama emphasized, "otherwise, it can collapse everything." He assured Ghanaians that his administration would prioritize transparency and provide a clear picture of the economy's true state.

“You have a $2.5 billion debt, your bailout is only $3 billion, and so $2.5 billion sitting and breathing and you say the economy is turning around.”

“That alone can crush everything that has been done and so they want to create a more upbeat story about their economic management before they leave office,” he said.

“We are going to open the books when we come and let Ghanaians know what the true situation is. Because if Ghanaians understand what the true situation is then they will understand some of the measures we will have to take to bring things back,” he added.

Mahama's warnings are not unfounded. Ghana's energy sector has struggled with inefficiencies and mismanagement, with the West African Gas Pipeline (WAPCo) network, which imports fuel from Nigeria, being a major casualty. The sector's challenges have been exacerbated by foreign exchange difficulties and Ghana's inability to meet its debt obligations.

Source: Florence Kyei /Lead News Online