$2.5bn energy sector debt could collapse economy — President-elect

The President-elect, Mr John Dramani Mahama, has expressed concern over Ghana's energy sector, citing mismanagement by the outgoing administration that has resulted in a $2.5 billion debt. 

Mr Mahama said the sector required urgent attention as its mounting debts could potentially collapse the economy.

“The energy sector is another area which the outgoing administration has mismanaged in a major way…they have kept the lights at the expense of accruing a huge debt; that debt is being audited and so far we are looking at $2.5 billion,” he said.

The President-elect made this clarification during a meeting with the Canadian High Commissioner to Ghana, Miriam Montrat, who paid a courtesy call to congratulate him on his victory at his private office in Accra yesterday.

Mr Mahama said the Electricity Company of Ghana (ECG) had also been mismanaged and was presently making commercial and technical losses of about 32 per cent.

"I don’t know which utility company that can function properly with such losses…the energy sector needs surgery," he said.

Mr Mahama said contrary to statements from the government that the economy was doing well, the energy sector debt alone could collapse the economy.

“They want to create an upbeat story about their economic management before they leave office, but like I said, we are going to open the books and let Ghanaians know what the true situation is, because if Ghanaians understand the true situation then they will understand some of the measures we have to take to bring things back to normal,” Mr Mahama said.

He criticised the government for prioritising crude oil imports over paying power generation companies.

Instead of developing the upstream petroleum sector to increase domestic gas production for power generation, he said the government, through its actions, had driven away key industry players.

Other delegations

The President-elect also received courtesy calls from the Mexican Ambassador to Ghana, Norma Ang Sánchez, and the Hungarian Ambassador to Ghana, Tamás Fehés.

Hungary's Ambassador to Ghana congratulated Mr Mahama on his electoral victory, expressing enthusiasm for strengthening bilateral ties between the two nations.

The Ambassador highlighted several areas for potential collaboration, including Agriculture, Water and Sanitation, and Security.

Additionally, the Ambassador mentioned the successful implementation of the chip-embedded passport project and expressed interest in continuing this cooperation.

In the realm of education, the Ambassador observed that Hungary's Governmental Scholarship Programme, which began in 2016, had been well-received, with new students from Ghana participating annually.

The Ambassador also expressed the hope that Ghana would open a mission in Budapest, further solidifying the bilateral relations between the two countries.

Mexico

Mexico's Ambassador to Ghana also congratulated Mr Mahama on his electoral victory, expressing enthusiasm for strengthening bilateral ties between Mexico and Ghana.

The Ambassador emphasised the importance of elevating the bilateral relations between the two nations to a higher level, particularly in the context of the Africa Continental Free Trade Area (AfCFTA).

She said Mexico saw Ghana as a strategic ally and was eager to collaborate in various areas, including agriculture.

In the agriculture sector, the Ambassador highlighted Mexico's expertise in farming systems, particularly in coconut crops and maize.

She expressed confidence that sharing Mexico's experience in this area would have a significant impact on Ghana's agricultural development.

The Ambassador reaffirmed Mexico's commitment to working with Ghana to strengthen their bilateral relationship, fostering cooperation in areas of mutual interest.