Unmasking the Fossil Fuel Debt: Actionaid Calls for Review in Ghana’s Energy Sector
By 2022, Ghana found itself unable to meet debt repayment obligations for the third time since becoming a fossil fuel-producing nation—forcing the country to seek yet another bailout from the very institutions that had once championed its oil industry.
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Energy policy is a cornerstone of inclusive and sustainable development. However, across the globe, energy policies shaped by international financial institutions have often prioritized profits over people—leaving a legacy of debt, inequality, and environmental degradation.
ActionAid Ghana has launched a damning new report titled “Gaslighting Ghana: Exposing Predatory Investments and the World Bank’s Role in Ghana’s Energy Crisis.”
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The report critically examines the role of the Bretton Woods institutions—particularly the World Bank Group—in influencing Ghana’s energy landscape. It reveals how foreign-led private investments and public-private partnerships (PPPs), heavily backed by World Bank guarantees, have deepened the country’s dependence on fossil fuels and saddled it with unsustainable debt.
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The discovery of oil deposits off Ghana’s coast in 2007 was initially hailed by the International Monetary Fund (IMF) as a transformative opportunity for national income and economic growth. But the reality has proven quite different.
By 2022, Ghana found itself unable to meet debt repayment obligations for the third time since becoming a fossil fuel-producing nation—forcing the country to seek yet another bailout from the very institutions that had once championed its oil industry.
Speaking to GhanaNewsOnline, John Nkaw, Country Director of ActionAid Ghana, stressed that while foreign influence has played a role, the ultimate responsibility lies with Ghana’s own governance structures.
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“We shouldn’t always blame foreign or multilateral entities for our situation. We are a sovereign state. If we manage our institutions and sectors effectively, we may not need to return to them for bailouts,” he said.
“At ActionAid, our stance is clear—Ghana’s energy future must be climate-resilient, democratically governed, and free from exploitative fossil fuel arrangements,” Nkaw emphasized.
He called for an immediate end to new coal, oil, and gas projects, the cancellation of fossil fuel-related debts, and a decisive pivot toward public investment in renewable energy systems that serve the needs of the people—especially women and marginalized communities.
“We hope this report will serve as a vital tool for policymakers, civil society organizations, and international partners who are serious about rethinking energy for the public good,” he concluded.
By Madjid Diallo || GhanaNewsOnline
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