Ghana energy and petroleum sector reforms

Ghana is implementing broad reforms across its energy and petroleum sectors to address debt and stimulate investment.

In the energy sector, reforms have cleared approximately US$1.47 billion in legacy debt and generated US$750 million in savings. These savings were driven by a US$500 million reduction from shifting power generation from liquid fuels to natural gas, and US$250 million from renegotiating with Independent Power Producers (IPPs). Improvements to the Cash Waterfall Mechanism (CWM) have increased monthly fund declarations from GH¢6 billion to nearly GH¢15 billion. This shift has allowed most IPPs to receive nearly 100% of their invoices, a significant improvement from a previous rate of approximately 42%, helping to prevent the accumulation of new arrears.

In the petroleum sector, the government is reviewing the legal framework of the Ghana National Petroleum Corporation (GNPC) to transition it into a more competitive commercial entity. The resolution of disputes with upstream players has unlocked roughly $3.5 billion in investment. This includes $2 billion for the Jubilee and TEN fields, which is expected to reduce Jubilee gas prices by about 18 percent and save the country approximately $300 million. An additional $1.5 billion has been committed by partners in the Offshore Cape Three Points project, including Eni, Vitol, and GNPC, to support gas export expansion and the Eban-Akoma discoveries. Despite these gains, officials noted that declining production and dwindling reserves remain critical challenges requiring accelerated exploration.