Ghana settles $1.47 billion energy sector debt to restore power stability

The Government of Ghana has announced it paid US $1.47 billion in 2025 to clear long-standing debts in the energy sector, a move officials say restores stability and international credibility to the country’s power system.

According to the Ministry of Finance, the payments included $597.15 million to fully reinstate a World Bank partial risk guarantee that had been exhausted under the previous administration. That guarantee was crucial in unlocking nearly $8 billion in private investment for the Offshore Cape Three Points gas field and the Sankofa Gas Project.

Ghana also settled all outstanding gas invoices owed to energy partners ENI and Vitol, paying around $480 million, and cleared about $393 million in legacy debts to Independent Power Producers, including major suppliers such as Karpowership and Cenpower.

Officials say the comprehensive settlement, completed within President John Dramani Mahama’s first year in office, marks a decisive reset of the power sector after years of arrears that threatened electricity reliability and investor confidence. Budget provisions and renegotiated agreements with upstream partners aim to keep future payments current and improve domestic gas output.

The government says the debt clearance ends an era of unchecked accumulation and lays the groundwork for more stable energy delivery and economic growth.