Ghana clears $1.47bn energy sector debts

Ghana has paid a total of US$1.47 billion in 2025 to clear longstanding energy sector debts and restore the World Bank guarantee for the sector, the Ministry of Finance said in a statement on Monday.

According to Finance Minister Cassiel Ato Forson, the government fully repaid US$597.15 million, including interest, drawn under the World Bank Partial Risk Guarantee, which had been exhausted in previous years. The repayment has effectively restored the guarantee, which is critical to investor confidence in Ghana’s power sector.

Minister Forson, in the statement on X, said the energy sector was in a fragile state when President John Dramani Mahama assumed office in January 2025, following years of persistent non-payment for gas supplied to the power sector.

“When President Mahama assumed office in January 2025, the energy sector had been pushed to the brink by years of persistent non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field. As a result, the World Bank Partial Risk Guarantee of US$500 million had been completely depleted under the previous administration,” Forson said.

‘Contained debt accumulation’

It was also revealed the government settled outstanding gas supply invoices amounting to US$480 million owed to ENI and Vitol for electricity generation from the Offshore Cape Three Points (OCTP) field.

“The Government of Ghana assures the general public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over,” Forson added.

The government also paid approximately US$393 million in legacy debts owed to independent power producers (IPPs), further stabilising the sector.

Beyond clearing inherited arrears, the statement said the government has maintained current payments on most IPP invoices in 2025 through the disciplined implementation of the Cash Waterfall Mechanism by the Ministry of Energy.