Ghana power sector faces $1.4 bn loss, IMF warns of deepening crisis

The International Monetary Fund reports that Ghana’s electricity sector recorded a financial loss of about US$1.4 billion in 2025 – roughly 1.5 % of GDP – and required roughly US$2 billion in government bailouts. The Fund attributes the weakness to three main problems: tariffs that do not cover costs, high technical and commercial losses (27.1 % overall, 31.3 % in the northern distribution area), and weak revenue collection, with the Electricity Company of Ghana collecting only about 86 % of billed charges. Outstanding payments to independent power producers and fuel suppliers peaked at US$2.2 billion before falling to US$1.7 billion, while ECG’s arrears rose to about US$3.5 billion mid‑year.

Energy analyst Kwadwo Poku disputes the government’s claim that all sector debts have been cleared. He says a US$1.1 billion debt to independent power producers is being spread over four years, but obligations to the Volta River Authority, GRIDCo and the Ghana National Gas Company remain unpaid. Poku notes that recent improvements in the cash‑waterfall payment system and cooler weather have eased pressure on the grid, but the underlying financial gaps persist.