Energy Sector Debt Crosses $3 Billion Mark – John Jinapor Raises Alarm
Minister-Designate highlights unaccounted power sales and calls for urgent measures to stabilize the sector and protect Ghana’s economy
- Energy sector debt now exceeds $3 billion, including $1.2 billion owed to IPPs
- Debt has risen significantly from $2.1 billion left by the Mahama administration in 2017
- John Jinapor calls for pragmatic solutions to prevent further economic strain
John Abdulai Jinapor, Ghana’s Energy Minister-Designate, has sounded the alarm over the nation’s escalating energy sector debt, calling it a pressing challenge that demands immediate action.
During his vetting by Parliament’s Appointments Committee on January 13, 2025, Mr. Jinapor disclosed that the sector’s debt had ballooned to over $3 billion as of January 12, 2025.
He highlighted that a significant portion of this debt includes $1.2 billion owed to Independent Power Producers (IPPs) as of October 2024.
Reflecting on the sector’s history, Mr. Jinapor noted that under the Mahama administration, energy sector debt was at $2.1 billion as of August 31, 2017. This surge underscores the urgent need for strategic financial reforms to prevent further deterioration.
Mr. Jinapor emphasized that unaccounted-for power sales are a major contributor to the current crisis.
He called for pragmatic measures to stabilize the sector and safeguard Ghana’s economic future, stressing the importance of sustainable financial management to address these liabilities effectively.
