In a major move to stabilize its power sector, Ghana’s government announced it paid off a whopping $1.47 billion in legacy energy debts during 2025.
This decisive action, taken during the first year of President John Dramani Mahama’s administration, is aimed at resolving the crippling debt that had threatened the country’s financial stability and led to an increase in power outages.
The payments address several key areas.
A significant portion, over $597 million, was used to fully repay and restore a depleted World Bank Partial Risk Guarantee, which is crucial for protecting private investment in Ghana’s energy sector.
The government also settled about $480 million in overdue gas invoices with partners like ENI and Vitol for the Sankofa Gas Project.
Additionally, approximately $393 million was paid to clear legacy debts owed to several Independent Power Producers (IPPs), including Karpowership and Cenpower.
In a statement, the Finance Ministry declared that “the era of uncontrolled energy sector debt accumulation is over,” signaling a commitment to fiscal discipline and restoring confidence with international partners.
