Ghana clears $1.47 billion in energy debts

President Mahama’s administration, which took office in January 2025, inherited a power sector pushed to the brink by years of unpaid gas supplies from the Offshore Cape Three Points (OCTP) field.

“The full repayment of $597.15 million under the World Bank Guarantee has restored the facility and reaffirmed Ghana’s credibility as a reliable partner on the global stage,” the government stated.

In addition to restoring the guarantee, the administration cleared all outstanding invoices owed to the Sankofa partners ENI and Vitol, totalling approximately $480 million.

“Prudent financial management and adequate budgetary provisions ensure we can sustain timely payments going forward,” officials said.

These measures are designed to support consistent nationwide electricity generation while reducing reliance on costly liquid fuels.

The government has also renegotiated all Independent Power Producer agreements, paying roughly $393 million in legacy debts during 2025. This move was part of a broader energy-sector reset aimed at securing better value for money for Ghanaian consumers and investors alike.

According to the Ministry of Finance, the combined payments in 2025 reached $1.47 billion, representing a decisive effort to stabilise the energy sector.

Industry analysts have welcomed the development, noting that clearing the backlog of debts is expected to bolster investor confidence, support industrial growth, and reduce operational risks across the energy sector.

The Mahama administration emphasised that the era of uncontrolled energy sector debt accumulation is over, signalling a renewed commitment to fiscal discipline, energy reliability, and strategic engagement with both domestic and international partners.