ACEP Director Calls for Urgent Reforms to Address Inefficiencies in Ghana’s Energy Sector
Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has called on the government to address the deep-rooted inefficiencies and political interference undermining Ghana’s energy sector.
Speaking on Keypoints with Alfred Ocansey on January 11, Boakye shed light on the long-standing challenges plaguing the industry and the toll they have taken on the country’s development.
“For years, the Electricity Company of Ghana (ECG) has been a major source of financial inefficiencies in the energy sector,” Boakye explained. “The government has repeatedly had to inject funds to keep the lights on, but this approach is not sustainable.”
Ghana’s energy sector, heavily dependent on public funding, has struggled to attract private investment due to persistent inefficiencies. The downstream sector also faces significant challenges, including the government’s failure to adjust fuel prices in line with market trends, which has contributed to mounting debts.
Between 2014 and 2015, efforts were made to reform the sector, but financial difficulties have only worsened. By 2017, Ghana’s energy sector was saddled with $2.5 billion in debt. Despite the introduction of the Energy Sector Recovery Program (ESRP), aimed at stabilizing the sector and reducing debt, the situation deteriorated further, with debts ballooning to $14.5 billion by 2023.
“The Russia-Ukraine war offered some temporary relief, but the sector’s structural inefficiencies have deepened,” Boakye noted. He also highlighted that the government has spent $3.7 billion to support the sector—funds that could have been invested in education and infrastructure instead.
Boakye cited political interference, such as the failed Power Distribution Services (PDS) deal, as a significant barrier to progress. He stressed the need for privatization of ECG as a potential solution, but warned that such efforts must be carefully planned to ensure they achieve long-term sustainability.
“The energy sector has immense potential, but it is being held back by poor decision-making and political interference,” he emphasized.
Boakye concluded by urging the government to make bold decisions and implement reforms to unlock the sector’s potential.
“It’s time for Ghana to prioritize the energy sector, address its inefficiencies, and adopt sustainable solutions that will allow it to thrive and contribute to national development,” he said.
SOURCE: http://dew360.net
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