Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), is calling for urgent reforms to address the worsening energy crisis in Ghana.
In a frank discussion with Alfred Ocansey on Keypoints on January 11, Boakye highlighted the critical state of the country’s energy sector and the immediate need for decisive action to prevent further strain on the economy.
“For years, the Electricity Company of Ghana (ECG), which is state-owned, has been at the heart of the sector’s inefficiencies,” Boakye said. “The company’s inability to attract private investment has left the government with no option but to repeatedly inject public funds to keep it running.”
Boakye emphasized that the lack of private sector involvement has contributed to the ongoing crisis, with public funds being used as a temporary solution rather than addressing the root causes. Efforts made between 2014 and 2015 to address these challenges were unsuccessful, with political interference and failed initiatives, such as the Power Distribution Services (PDS) deal, only exacerbating the situation.
“The government must act decisively,” Boakye stated. “Privatizing ECG may be an option, but it must be approached cautiously and strategically to ensure that the benefits are long-lasting. The sector’s structural issues need to be resolved for good.”
In 2017, Ghana’s energy sector was burdened with $2.5 billion in debt, and by 2023, that figure had surged to $14.5 billion. The downstream sector has also been grappling with difficulties in adjusting fuel prices to reflect market conditions, leading to even higher debt accumulation.
Despite some temporary relief due to external factors like the Russia-Ukraine war, which slowed down costly LNG projects, the core inefficiencies continue to hinder the sector’s growth. Boakye noted that the government has already spent $3.7 billion supporting the sector, funds that could have been better used for essential national projects such as education and infrastructure.
Boakye reiterated that Ghana’s energy sector holds significant potential, but only if the government moves beyond short-term fixes and implements robust, long-term solutions. With the right leadership and technical expertise, the sector could overcome its challenges and play a key role in the country’s broader development goals.
“The energy sector needs urgent reform to unlock its full potential and support the nation’s growth,” Boakye concluded.
SOURCE: http://dew360.net
Join our WhatsApp channel: https://whatsapp.com/channel/0029VakDz4u9RZATWh53yC1a
