The Government of Ghana has fully settled US $1.47 billion in long-standing energy sector debts, a major move aimed at stabilizing the nation’s electricity supply and restoring confidence among international partners.
Payments were made throughout 2025 to clear legacy obligations that had accumulated over several years. A key component of the settlement was US $597.15 million paid to reinstate a World Bank partial risk guarantee, a critical instrument that facilitates nearly US $8 billion in private investment into energy projects such as the Offshore Cape Three Points and Sankofa Gas fields.
In addition, the government settled outstanding gas invoices totalling about US $480 million, paying energy suppliers ENI and Vitol for gas used in electricity generation. Approximately US $393 million was also disbursed to clear debts owed to Independent Power Producers (IPPs), including firms like Karpowership and Cenpower.
Officials describe completing these payments within President John Dramani Mahama’s first year in office as a decisive reset for Ghana’s energy sector, which had been burdened by arrears that undermined both electricity reliability and investor confidence. The government says that budget provisions and renegotiated agreements with upstream partners are expected to keep future payments current and enhance domestic gas output to support sustained energy generation.
Authorities have emphasised that eliminating this debt cycle lays the groundwork for more stable power delivery and stronger economic growth, while efforts to manage future financial obligations aim to prevent a recurrence of past challenges.
