Mahama Calls for Immediate Overhaul of the Energy Sector

   President-elect John Dramani Mahama has expressed serious concerns about the critical state of Ghana’s energy sector, emphasizing the immediate need for comprehensive reforms to prevent further damage to the country’s economic stability. During a recent meeting with Myriam Montrat, the Canadian High Commissioner to Ghana, in Accra on Friday, Mahama underscored the urgency of addressing the sector’s challenges, warning that failure to do so could have catastrophic consequences for Ghana’s broader economy.

Mahama made it clear that one of his administration’s key priorities will be to address the issues plaguing the energy sector. He stressed that without swift and substantial reforms, the sector could destabilize the country’s entire economic structure. “The energy sector needs urgent surgery, otherwise it can collapse everything,” Mahama remarked, highlighting the severity of the situation and the need for decisive action to safeguard the future of the sector.

The President-elect also criticized the current government’s portrayal of an economic recovery, particularly pointing to the unresolved debt crisis in the energy sector. He highlighted that Ghana is grappling with a massive $2.5 billion energy sector debt, which remains largely unaddressed despite the government’s claims of economic progress. Mahama questioned the sustainability of the country’s economic health while such a large debt remains unresolved.

“You have a $2.5 billion debt, your bailout is only $3 billion, and so $2.5 billion sitting and breathing, and you say the economy is turning around,” Mahama pointed out, stressing that this lingering debt is a significant obstacle to any genuine economic recovery. He further argued that the energy sector’s debt load undermines any positive narratives about Ghana’s economic prospects, suggesting that the current government’s optimistic portrayal of the economy is misleading.

Mahama also warned that even if other sectors of the economy show signs of improvement, the unresolved debt in the energy sector could still cripple the country’s economic progress. He stated that the energy sector’s issues are so significant that they could reverse all the progress that has been made in other areas, urging the need for immediate reforms to avoid further damage.

“That alone can crush everything that has been done, and so they want to create a more upbeat story about their economic management before they leave office,” Mahama said, criticizing the outgoing administration for focusing on a narrative of recovery without addressing the deep-rooted financial issues facing the country.

Despite these concerns, Mahama reassured Ghanaians that his administration would be transparent about the true state of the economy once it assumes office. He promised to provide a clear and honest assessment of the challenges the nation is facing, particularly in the energy sector, and to explain the steps that will be taken to resolve them.

“We are going to open the books when we come and let Ghanaians know what the true situation is. Because if Ghanaians understand what the true situation is, then they will understand some of the measures we will have to take to bring things back,” Mahama stated, emphasizing the importance of transparency in his administration’s approach to governance.

Mahama’s statements reflect his commitment to tackling the longstanding issues in the energy sector, which has been a significant challenge for the country. He recognizes the crucial role energy plays in sustaining economic growth and development, and is determined to implement reforms that will ensure the sector’s long-term viability. His call for “urgent surgery” in the energy sector signals that his government will prioritize addressing these problems immediately upon taking office.

President-elect Mahama’s remarks underscore the gravity of the challenges facing Ghana’s energy sector and its potential to impact the broader economy. His commitment to transparency and comprehensive reform reflects his broader vision for creating a more stable and prosperous future for the country. As his administration prepares to take office, Mahama’s focus on addressing the energy sector’s issues highlights the importance of securing a sustainable foundation for Ghana’s economic growth.