Ghana’s Power Sector Faces Crisis as Karpowership Threatens Supply Cut Over $379M Debt

Ghana’s power sector is on the brink of crisis as Karpowership, the operator of the Aboadze power barge, has threatened to suspend electricity supply due to an outstanding debt of $379 million owed by the Electricity Company of Ghana (ECG).

The warning was issued during a February 10, 2025, meeting between Energy and Green Transition Minister John Abdulai Jinapor and Karpowership officials.

The debt adds to Ghana’s ballooning energy sector liabilities, which have now surpassed $3 billion.

• Minister Jinapor has urged Karpowership to delay any drastic measures while the new administration seeks a solution.
• The International Monetary Fund (IMF) has repeatedly warned that Ghana’s rising energy debt poses a serious economic risk.

If Karpowership proceeds with its threat, Ghana could face:

• Prolonged power outages, affecting industries, businesses, and households.
• Disruptions in manufacturing, telecommunications, and healthcare services.
• Further strain on the economy, potentially worsening inflation and job losses.

The IMF has urged Ghana to undertake sweeping reforms to address inefficiencies and financial losses in the energy sector.

With the window for intervention narrowing, the government faces intense pressure to secure funding or negotiate a settlement to prevent a full-blown energy crisis.