Energy Sector Needs Urgent Reforms to Prevent Collapse – John Mahama

President-elect John Dramani Mahama has called for immediate and comprehensive reforms in Ghana’s energy sector to avert a potential collapse, warning that the sector’s challenges pose a serious threat to the country’s economic stability.

Speaking during a courtesy call by the Canadian High Commissioner to Ghana, Myriam Montrat, in Accra on Thursday, December 19, Mahama emphasized the critical state of the energy sector, describing it as requiring “urgent surgery.”

“The energy sector needs urgent surgery; otherwise, it can collapse everything,” he warned, highlighting the sector’s $2.5 billion debt as a significant obstacle to economic recovery.

Criticizing the outgoing administration, Mahama pointed out the contradiction between the claimed economic turnaround and the unresolved debt in the energy sector. “You have a $2.5 billion debt, your bailout is only $3 billion, and so $2.5 billion sitting and breathing, and you say the economy is turning around,” he remarked, describing the narrative as misleading.

He further cautioned that the unresolved financial issues could undermine any progress made, accusing the outgoing government of creating an overly optimistic image of its economic management.

“That alone can crush everything that has been done, and so they want to create a more upbeat story about their economic management before they leave office,” Mahama said.

The President-elect reiterated his administration’s commitment to prioritize the energy sector, pledging to implement reforms that would enhance efficiency, sustainability, and reliable power supply.

In recent months, the energy sector has faced frequent outages and load shedding, with little explanation from the government. Reports indicate that the government owes power producers approximately $2.5 billion, with no clear strategy for settling the debt.

Mahama also assured Ghanaians of transparency in his administration, promising to reveal the true state of the economy after taking office.

“We are going to open the books when we come and let Ghanaians know what the true situation is. Because if Ghanaians understand what the true situation is, then they will understand some of the measures we will have to take to bring things back,” he explained.

Mahama’s comments have sparked renewed discussions about the urgency of addressing Ghana’s energy crisis to ensure economic stability and growth.