Rebuilding the foundations of Ghana’s energy sector

Ghana’s energy sector faces severe financial challenges, including substantial arrears due to inefficiencies in the energy value chain and high idle capacity charges. These issues, compounded by public debt and foreign exchange pressures, threaten the sector’s sustainability.

A proposed solution is a mineral-backed debt swap, leveraging Ghana’s rich natural resources like gold, bauxite, and oil to settle energy sector liabilities. This strategy could reduce arrears, stabilize finances, and mitigate foreign exchange risks.

It could also attract investment in energy infrastructure and support the transition to renewable energy. However, its success depends on transparent governance, a robust legal framework, and international financial partnerships.

If implemented carefully, it could ensure long-term sustainability for Ghana’s energy sector and economy.