Ghana‘s Minister of Energy and Green Transition, John Jinapor, has announced a sharp reduction in the Electricity Company of Ghana‘s (ECG) budget from GH₵500 million to GH₵250 million. This decision follows alarming reports of missing containers at the port and massive budget overruns by the state-owned power distributor.
The budget cut aims to redirect funds towards settling ECG’s mounting debts owed to power producers. Jinapor revealed that ECG was initially allocated GH₵935 million in 2023 for planned procurement. However, the company significantly exceeded its financial limits, accumulating a staggering GH₵7.3 billion over its budget, largely due to excessive cable purchases.
This financial mismanagement has exacerbated ECG’s revenue shortages, resulting in the inability to clear key shipments at the port. The missing containers, tied to unpaid clearance fees, have further intensified scrutiny of ECG’s operations.
Addressing Parliament, Jinapor assured lawmakers of the government‘s commitment to ensuring ECG’s stability and preventing further financial leakages. He noted that urgent action is necessary to prevent a collapse of the energy sector, which currently faces an alarming GH₵80 billion debt burden.
“We have reduced their budget from GH₵500 million to GH₵250 million because we must pay the power producers. The energy sector cannot sustain such financial mismanagement. If we don’t act now, the entire system is at risk of collapse. As Minister, I am determined to implement these tough decisions, no matter how challenging,” Jinapor stated.
The budget cut signals a government-led crackdown on financial inefficiencies within ECG, prompting calls for stronger internal financial controls. While the move may impact ECG’s short-term operational capacity, industry stakeholders view it as a necessary step toward long-term sustainability.
As Ghana grapples with a growing energy sector debt, the government’s latest measures highlight a broader push for financial discipline and strategic resource allocation. With the energy sector’s stability at stake, ECG’s leadership faces mounting pressure to adopt more transparent and accountable financial practices.
Source: Joseph Yoyowah || TheHighStreetJournal
March 29, 2025