Ghana Clears $1.47bn Energy Sector Debt, Restores World Bank Guarantee

Ghana’s government has announced a significant fiscal breakthrough in the power sector, paying off US $1.47 billion in outstanding energy sector debts that had accumulated over previous years. This move has fully restored the World Bank’s partial risk guarantee, a financial safeguard designed to protect nearly $8 billion in private energy investment and support stable gas supply from the Offshore Cape Three Points field. 

According to the finance ministry statement, part of the payments — including nearly $597 million to the World Bank itself — was used to reinstate the guarantee, improving Ghana’s credibility with international partners. The government also settled arrears with independent power producers and gas suppliers, including significant sums owed to ENI, Vitol, Turkey’s Karpowership, and Cenpower Generation. 

Officials said the debt clearance marks a turning point for the country’s energy finances, adding that disciplined fiscal management and renegotiated contracts with energy companies helped make the deal possible. The ministry emphasized that clearing these liabilities is expected to reduce disruptions and boost confidence in Ghana’s electricity reliability and investment climate. 

This development comes amid broader power sector reforms aimed at attracting private investment and reducing Ghana’s dependence on costly liquid fuels — initiatives officials believe will strengthen energy sustainability and economic growth.