Recent power outages threat to rebooting economy – IES

The Institute for Energy Security (IES) has stated that the recent power outages in the country will affect economic activities if proper measures are not adopted to find a permanent solution to the problem.

A press release issued by the IES stated that the several power supply challenges affecting the smooth running of businesses and homes alike is very unfortunate and could have an impact on an economic rebound.

Since the beginning of the year, there have been several major power supply cuts, as experienced on 27 February 2021, 03 March 2021, and also the total shutdown experienced on 07 March 2021.

These and other outages have left a lot of people and businesses in the dark, distorting plans and activities, and affecting negatively the cost component of the operation of businesses, that are just recovering from the pandemic.

However, the havocs caused by the COVID-19 pandemic are enormous such that lives and livelihoods have been severely affected and displaced.

Families, individuals, and businesses alike are still struggling to overcome the devastating effect of this pandemic.

Meanwhile, the 2021 Budget statement as presented to the Parliament of Ghana makes an indication of the need to increase the growth rate of the economy by harnessing the potential of industries. The power crisis as it has become casts doubt on the ability of the government to meet the anticipated growth in the economy.

Until the current power incidents recorded cease, the Ghanaian economy may struggle to come out of the recession caused by the pandemic.

“The government must be guided by the events of 2014–2016, and how it affected the Ghanaian economy. If the government is serious with rebooting the economy, then it must ensure that the utilities within the power value chain are resourced financially, to ensure operational efficiencies in power delivery,” the statement noted.

However, Government must ensure that the cash-flow constraints which make it difficult for the power transmitter GRIDCo, and the distributors to improve on their networks, are swiftly addressed.

Below is the full statement;