Ghana Injects $1.47bn to Rescue Power Sector and Reinforce Market Confidence

Ghana has committed US$1.47 billion to stabilising its energy sector, a move the government says is intended to reverse years of financial strain and rebuild trust among international partners.

In a statement released on Monday, the Ministry of Finance said the intervention was necessary to address long-standing payment defaults that had placed the sector under severe pressure, particularly in relation to gas supplies from the Offshore Cape Three Points (OCTP) field.

Officials noted that accumulated arrears before the current administration took office had exhausted a US$500 million World Bank Partial Risk Guarantee, a facility designed to shield investors from payment risks within Ghana’s power industry.

Introduced in 2015, the guarantee was central to attracting close to US$8 billion in private investment for the Sankofa Gas Project, providing assurances to partners ENI and Vitol in cases of government payment shortfalls.

The Finance Ministry said the government has now reimbursed US$597.15 million, including interest, that had been drawn on the World Bank facility – effectively restoring the guarantee and signalling renewed fiscal credibility.

Authorities also confirmed that all outstanding gas bills owed to ENI and Vitol were cleared in 2025, amounting to roughly US$480 million, leaving the country current on its financial obligations to the Sankofa partners.

Beyond gas payments, the government disclosed that about US$393 million was paid last year to Independent Power Producers (IPPs) to settle legacy debts, following the renegotiation of power contracts to improve cost efficiency.

The ministry said future budgets now make provision for timely payments across the energy sector, adding that measures have been put in place to prevent a return to unsustainable debt accumulation.