Ghana has agreed with the World Bank to strengthen cooperation in five priority sectors, including energy. The agreement was reached during a meeting between Finance Minister Cassiel Ato Forson and World Bank Group President Ajay Banga on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank.
A sector weakened by structural debt
Ghana’s energy sector debt stood at $3.1bn as of March, according to data from the Ministry of Finance. Of that amount, $1.73bn is owed to independent power producers. This situation is putting pressure on public finances as the government works to ensure universal access to electricity by 2030.
The Energy Commission, the country’s energy regulatory authority, reported that the state-owned Electricity Company of Ghana (ECG) recorded a 32% distribution loss rate in 2024, its highest level in 20 years.
A partnership focused on infrastructure and modernisation
Discussions with the World Bank aim to strengthen both existing and future energy projects. Although no specific initiative has yet been announced, this cooperation is expected to help modernise infrastructure and diversify energy sources.
Ghana has an electricity access rate of 89%, one of the highest in sub-Saharan Africa. However, the grid remains reliant on imported fossil fuels, despite the country’s considerable renewable energy potential, including hydropower, solar, wind and biomass.
A transition guided by ongoing programmes
International assistance is aligned with the National Energy Transition Framework, which outlines a gradual transformation of the energy mix. The World Bank is already involved in several initiatives, such as the Ghana Energy Sector Transformation Project and the Scaling Up Renewable Energy Programme.
These initiatives aim to reduce technical losses and improve governance in the sector. The government expects financial and technical support to strengthen the electricity system’s resilience amid ongoing fiscal challenges.
According to a report published in April by non-governmental organisations, including ActionAid Ghana and the Centre for Research on Multinational Corporations (SOMO), the country’s current energy choices, influenced by international institutions, may increase budgetary pressure.
