Ghana’s energy crisis deepens as Karpowership threatens power cut over $379m debt

Ghana’s power sector faces a looming crisis as Karpowership, operator of the Aboadze power barge, has threatened to suspend electricity supply if the government fails to settle an outstanding debt of $379 million.

The warning came during a meeting on February 10, 2025, between Energy and Green Transition Minister John Abdulai Jinapor and Karpowership officials. The debt, owed by the Electricity Company of Ghana (ECG), adds to the country’s growing energy sector liabilities, which have now exceeded $3 billion.

Acknowledging the gravity of the situation, Minister Jinapor appealed to Karpowership to delay any drastic action while the new administration works on a payment solution.

However, the International Monetary Fund (IMF) has repeatedly flagged Ghana’s energy debt as a major financial risk, calling for urgent reforms to prevent further economic strain.

If Karpowership proceeds with the disconnection, Ghana could face severe power outages, affecting industries, businesses, and households across the country.