Mahama Seeks $190M from the US to Prevent ‘Dumsor’
President calls for renewed energy sector reforms and funding to stabilize Ghana's electricity supply
- Ghana aims to renegotiate with the US for $190M
- President Mahama emphasizes privatizing electricity distribution
- The World Bank expresses support for Ghana's energy reforms and socioeconomic development agenda
Ghana is preparing to renegotiate with the United States government to potentially reinstate $190 million under the Millennium Challenge Corporation (MCC) Compact, previously earmarked for the electricity sector.
President John Dramani Mahama revealed this during a courtesy visit from Mr. Ousmane Diagana, the World Bank Vice President for West and Central Africa, at a meeting in Accra following the President’s inauguration on January 7.
Highlighting the critical need for reforms, President Mahama emphasized the importance of revamping the energy sector to reduce debt and enhance efficiency. He recalled the MCC Compact’s original purpose—signed during his tenure as Vice President under the late President John Evans Atta Mills—to transform Ghana into a leading producer and exporter of electricity in Africa.
However, political transitions and the fallout from the Power Distribution Services (PDS) saga interrupted these plans. The President stressed the urgency of privatizing aspects of electricity distribution to inject private-sector efficiency into the system, adding that discussions with MCC officials revealed the door to reinstating the $190 million remains open.
“If the MCC funds are not accessible, we will seek World Bank support to complete this critical aspect of the project,” he stated.
Mr. Ousmane Diagana reaffirmed the World Bank’s dedication to Ghana’s socioeconomic development, signaling potential support for ongoing energy reforms.
