Ghana risks losing up to $2 billion if power outages persist - ASEC warns

The Africa Sustainable Energy Centre (ASEC) has warned that Ghana could lose up to $2 billion if persistent power outages continue unchecked, describing the situation as a growing threat to economic stability and investor confidence.

The group said ongoing electricity disruptions are already affecting households, businesses, critical services, and overall productivity, with major implications for national development.

According to ASEC, the recent outages are hitting key sectors such as manufacturing, services, healthcare, and small and medium-sized enterprises (SMEs), increasing operational costs and forcing businesses to rely on expensive backup power sources.

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“Electricity is the lifeblood of any modern economy and if Ghana continues on this trajectory, the cumulative impact could erode up to $2 billion annually. This is not just an energy issue, it is a national economic emergency,” Executive Director of ASEC, Ing. Justice Ohene-Akoto, said.

ASEC noted that Ghana’s power challenges stem from multiple factors, including generation constraints, fuel supply inconsistencies, transmission bottlenecks, and distribution inefficiencies.

Beyond immediate financial losses, the centre warned that prolonged instability could lead to reduced foreign direct investment, slowed industrial growth, job losses, and declining living standards, with ripple effects on healthcare and education.

To address the situation, ASEC has called for urgent and coordinated reforms across the energy sector, including the use of artificial intelligence for predictive maintenance and grid resilience.

It also recommended strengthening revenue mobilisation and metering systems, including reforms at the Electricity Company of Ghana (ECG), alongside increased investment in smart metering to reduce losses and improve accountability.

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The centre further urged diversification of Ghana’s energy mix through renewables such as solar, wind, and hydro, as well as improved fuel security for thermal plants.

Other recommendations include modernising transmission and distribution infrastructure, promoting energy efficiency, and strengthening governance and regulatory oversight within the sector.

“The cost of inaction far outweighs the cost of reform. Ghana has the expertise and potential to build a resilient and sustainable energy future. What is needed now is decisive action, strategic investment, and unwavering commitment,” Ing. Ohene-Akoto emphasised.

ASEC has called on government, private sector actors, and development partners to urgently collaborate on long-term solutions to safeguard the country’s energy future.