President John Dramani Mahama has disclosed that his administration inherited an energy sector debt of approximately $1.5 billion, describing the situation as one of the most significant financial burdens confronting the government since assuming office.
Addressing members of the Ghanaian diaspora during a Town Hall Meeting, President Mahama said the debt continues to affect operations within the power sector, but assured citizens that government is taking decisive measures to restore financial stability and improve efficiency.
“We inherited a debt in the energy sector of about $1.5 billion, and the Minister for Energy and the Minister for Finance have both been working diligently to pay down that debt,” the President stated.
President Mahama explained that the debt accumulated over several years has placed considerable pressure on key institutions within the energy value chain, including power producers, fuel suppliers, and utility service providers.
According to him, government is implementing a structured repayment strategy while introducing reforms designed to strengthen financial discipline and improve revenue collection across the sector.
He noted that resolving the debt challenge remains essential to ensuring uninterrupted electricity supply and maintaining investor confidence in Ghana’s energy industry.
The President emphasized that a stable energy sector is fundamental to Ghana’s industrialization agenda, economic expansion, and job creation efforts.
He stated that businesses, manufacturers, and investors depend heavily on reliable electricity supply, making the recovery of the sector a national priority.
“Without a financially healthy energy sector, it becomes difficult to sustain economic growth and attract the level of investment required for national development,” he noted.
President Mahama revealed that government is working closely with sector stakeholders to address operational inefficiencies, reduce financial losses, and improve overall management of energy institutions.
The administration is also pursuing policies aimed at ensuring that future governments do not inherit similar debt burdens.
Analysts believe these reforms could strengthen the long-term sustainability of Ghana’s power sector while improving service delivery to consumers.
During the engagement, President Mahama reassured members of the diaspora that despite inherited economic challenges, the government remains focused on stabilizing the economy and protecting recent gains.
He emphasized that efforts to reduce debt, improve public finances, and strengthen strategic sectors such as energy are already producing positive results.
The President further encouraged Ghanaians abroad to continue investing in the country and to take advantage of opportunities emerging from ongoing economic reforms.
Economic observers say the government’s ability to manage the energy sector debt will play a crucial role in determining the country’s long-term economic outlook.
Many experts argue that reducing financial pressures within the power sector could unlock additional investment, improve electricity reliability, and support Ghana’s broader development agenda.
President Mahama’s remarks are expected to fuel further discussions on energy sector reforms, debt management, and the future direction of Ghana’s economy as government continues its efforts to build a more resilient and sustainable energy industry. President Mahama Energy Sector Debt