Ghana’s government paid $1.47 billion in 2025 to clear long-standing debts in the energy sector, replenish a depleted World Bank guarantee and settle arrears owed to power producers, the finance ministry said on Monday.
The West African country’s power sector has struggled with large unpaid obligations, a situation that has contributed to a sharp rise in electricity outages.
As per Reuters, President John Dramani Mahama pledged to reduce the roughly $2.5 billion owed to independent power producers and gas suppliers, last year.
“The era of uncontrolled energy sector debt accumulation is over,” the finance ministry said in a statement, adding that the payments were made possible by disciplined financial management while also ensuring provisions for meeting future obligations on time.
According to the ministry, the government repaid more than $597 million to the World Bank, fully restoring the partial risk guarantee that supports gas supplies from the Offshore Cape Three Points field.
The guarantee, created in 2015, was intended to safeguard nearly $8 billion in private investment in Ghana’s energy sector, but its depletion had hurt the country’s credibility with international partners.
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The ministry also said that an additional $480 million was paid to Italian energy company ENI and commodities trader Vitol to settle outstanding gas invoices linked to electricity generation under the Sankofa Gas Project.
In addition, the government cleared about $393 million in legacy debts owed to independent power producers, including $120 million to Turkey’s Karpowership and $59.4 million to Cenpower Generation, based on a detailed breakdown provided by the ministry.
In a separate statement, independent power producers said the settlement of long-overdue payments marks a major milestone in restoring financial stability and operational confidence across the power sector.
The finance ministry added that the government has renegotiated all agreements with independent power producers and is working with Tullow Oil and its Jubilee Field partners on a payment roadmap.
Ghana is also aiming to increase domestic gas production and cut its dependence on costly liquid fuels.
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Image Credit: African Press Agency
