By Kingsley Webora TANKEH

Panellists at the just-ended Ghana Economic Forum (GEF) 2025 have called for a renewed focus on efficiency, technology and renewable energy as sustainable means to address the country’s ballooning energy sector debt and ensure reliable yet affordable power supply.

The experts agreed that investing in efficient technologies and diversifying Ghana’s energy mix through renewables such as solar, gas and nuclear power offers a more lasting solution than continually increasing tariffs.

Setting the tone for this discussion, Technical Advisor at the Ministry of Energy and Green Transition Dr. Ishmael Ackah – speaking on behalf of the sector minister – highlighted systemic failures and weak oversight as root causes of the current power challenges and legacy debt. He noted that the sector’s debt, estimated at about                   US$3.1billion owed to Independent Power Producers (IPPs), underscores the urgent need for reforms to restore financial stability and efficiency.

“In 2006, the Energy Commission developed a strategic national energy plan. Unfortunately, this plan was not implemented,” Dr. Ackah stated.

He noted that this failure to plan is endemic in the entire national development process, stressing that it causes panic-driven procurement of overpriced energy during emergencies – plunging the sector into ‘dumsor’ and cyclical debt.

“We signed take-or-pay contracts for power we didn’t need and the bill, as always, landed at the Ghanaian people’s feet,” the Technical Advisor said.

He expressed concern over persistent inefficiencies and revenue losses within the energy sector, citing procurement practices that have not always served the state’s best interests. Such practices, he noted, have deprived the country of vital resources that could have been channelled into critical areas such as education and health infrastructure.

Dr. Ackah advocated greater transparency and accountability in managing the sector’s finances, adding that improved governance and oversight will help reduce waste and ensure value for money in future energy investments.

“In 2015, we did competitive procurement for solar and got a price less than US$0.10. We did not implement that. We actually signed solar projects that were US$0.18 and             US$0.21.” This is a clear example of how not to run a sector.

Corroborating Dr. Ackah, Executive Director-Africa Centre for Energy Policy (ACEP) Benjamin Boakye expressed concern over the mounting energy sector debt, saying it is an albatross – “bigger than our annual investment in infrastructure”.

This means the money being poured into servicing this legacy debt is greater than the money spent to build roads, schools and hospitals, he explained.

“If we are able to take the energy sector burdens from the Ministry of Finance, we could perhaps double government investment in infrastructure. Your roads will be fixed,” he said.

The experts made these comments during a panel session at the GEF 2025, themed ‘Financing the future, tackling legacy debt and building a resilient economy.

They enumerated actionable remedies for the ailing energy sector to build a system capable of powering the country’s industrialisation agenda.

These included prioritising  renewable energy in the nation’s energy mix, promoting accountability and ramping up tariffs-collection.

The experts argued that the sector’s problems are suffocating national development and the solutions require political will and systemic reform.

According to Dr. Ackah, among the factors needing immediate attention are non-cost-reflective tariffs despite them being among the region’s highest; and inefficiencies – from unmetered streetlights to widespread power-theft, which he fondly called “you touch”. He stressed that the sector’s unbudgeted subsidies for specific industries amounted to over  US$190million in 2021 alone, further bloating the debt.

However, Dr. Ackah outlined ongoing government efforts including renegotiating Independent Power Producers’ contracts – which has secured a US$261million discount on legacy debts – and the recent passage of a Legislative Instrument mandating competitive procurement for power generation.

He also highlighted improved revenue collection by the Electricity Company of Ghana (ECG), which has risen from an average of GH¢800million monthly to GH¢1.5billion. However, this remains lower than the required GH¢2.4billion estimated by the Public Utilities Regulatory Commission (PURC).

In contrast, a partner at KPMG Ghana, Reindolf Annor, called for transparency; saying the increase in revenue can be attributed to tariff-hikes rather than supposed efficiency.

“We need transparency from the very top. How much have we collected from the energy levies? How much has been used to reduce the sector debt?” he quizzed, arguing that such accountability will build credibility.

He called for key performance indicators (KPIs) for state-owned energy enterprises, with severe consequences for non-performance. “If we want to turn it around, then there must be clear KPIs. If you are not performing, then decisions ought to be taken.”

The Chief Executive Officer (CEO) of the Chamber of Independent Power Producers, Dr. Elikplim Kwabla Apetorgbor, proposed monetising state-owned thermal plants and selling idle capacity to neighbouring countries to rope-in more revenue to offset the debt.

“We are blessed to be surrounded by countries that are hungry for electricity. We should free the system and allow this idle capacity to be sold outside,” he urged.

The panellists concurred that the current energy model is too expensive and inefficient, calling for the addition of renewable and cost-efficient sources to the mix.

The Technical Director of ESPco Nuclear, Dr. Nii Kwashie Allotey,  challenged the notion that renewables are incompatible with industrialisation.

“Today we are running simple cycle plants at US$0.11 per kilowatt-hour. We can get the same energy from renewable energy for less than US$0.10,” he argued, citing China and India as industrial giants that use renewables.

He and the others stressed that offsetting the legacy debt shouldn’t come at the expense of local industry.

“We’ve reached a point where you are killing the goose that lays the golden eggs,” Dr. Allotey warned, alluding to the burden of high tariffs on industries.

Going forward, Head of Engineering Unit-Volta River Authority (VRA) Kwaku Wiafe made a case for government investing in nuclear energy so it becomes the baseload complement to hydro- and gas-powered plants.

He also called on government to establish a board for the Nuclear Energy Programme Implementation Organisation, adequately resource the project operating organisation (Nuclear Power Ghana) and view nuclear as a national transformation agenda, not just a power source.

“Countries are giving tariffs for nuclear from US$0.29 for plants that are already paid for to about six cents for new plants,” he revealed, presenting it as a viable, long-term solution for affordable, stable power.

The Ghana Economic Forum (GEF) 2025, organised by Business and Financial Times (B&FT), fostered in-depth discussions on critical issues shaping the Ghanaian economy.

The 14^th edition was sponsored by Fidelity Bank and KPMG. The event, themed, ‘Currency stability – A reset for sustainable economic growth’, gathered technocrats, policymakers and stakeholders in finance, energy and agriculture to explore solutions for Ghana’s economic challenges.

By Kingsley Webora TANKEH

The Institute of Statistical, Social and Economic Research (ISSER) has affirmed that government’s fiscal consolidation efforts remain on course.

However, it has raised concerns about the country’s escalating national debt – noting that only a small proportion of the borrowed funds has been channelled into capital projects which drive sustainable growth.

Public debt increased from 43.9 percent of GDP in 2013 to around 72 percent in 2023. However it reduced slightly to 61.8 percent by end-2024, following some debt relief achieved through the debt restructuring programme.

Meanwhile, capital spending increased by only 0.1 percent in 2024 to 2.5 percent of GDP from the 2.4 percent recorded in 2023.

The country’s debt-to-GDP ratio stood at 43.8 percent as of June 2025.

This shows a worrying trend of divestment for capital projects, having diminished drastically from 6.9 percent of GDP in 2010.

Speaking at the State of the Ghanaian Economy Report (SGER) 2024 launch, Director of the institute Prof. Robert Darko Osei expressed a need for government to improve its investment efficiency by ensuring that every dollar borrowed is invested in productive ventures capable of generating sustained returns.

He said for debt to be useful for economic growth, it must be used to undertake capital projects including expansion of education and health reach.

The State of the Ghanaian Economy Report (SGER) 2024 highlighted economic recovery in 2024, with analyses of performance indicators and drivers of growth.

The report recommended that government borrows responsibly at near concessionary rates as possible and resource the Public Accountability and Governance Committee (PIAC) to provide oversight of government debt in ensuring transparency and accountability.

It also stated that government should reduce recurrent spending and consider establishing a Value for Money Authority to thoroughly vet government spending.

Prof. Osei noted the country’s over-reliance on mineral exports, especially gold – which surged significantly in the past few months, stressing a need to diversify the country’s exports to grow its economy.

He revealed that this surge in gold exports has made South Africa Ghana’s major trading partner, with over 84 percent of exports to the Southern African country being gold.

As illegal gold mining – popularly known as galamsey – continues to ravage water-bodies and land, the researcher called for a nuanced approach to mining; not an outright ban on small-scale mining.

“The answer is not, let’s stop all mining activities. Let’s not throw the baby out with the bath water. If the issue is about the process and how we get the gold, then let’s tackle that.”

Prof. Osei said there should be cost-benefit analyses, advocating investment in research to gather “the right evidence” to shape future mining policy. “We need to invest in getting the right evidence to inform policy,” he added.

He advised government to fund more research into the potential impact of these activities on agriculture, which he said is supposed to be the bedrock of economic transformation.

With gold being linked to environmental issues, especially gold mined through galamsey, the question lies in how this menace can be tackled without impacting the foreign exchange potential of an import-dependent economy like Ghana’s.

Meanwhile, the immediate past Director of ISSER Prof. Peter Quartey, while commending the Bank of Ghana (BoG) for its effective inflation targetting, warned that economic growth shouldn’t be sacrificed on the altar of inflation targetting.

Responding to a question on BoG’s open market operations, he said he was taken aback when the Governor said inflation will reduce further by end of the year, stressing that inflation is already in the target band of 8 plus or minus 2.

Prof. Quartey emphasised that “we should strive to attain an optimal rate of inflation”, noting that some level of inflation is good.

“We need optimal inflation to get growth because we are not spending. I would love to see deficits, reasonable rates of inflation and some stability in the exchange rate –  not at the expense of growth and jobs.”

He stressed that BoG should determine a threshold for its inflation-targetting, saying, “we need to estimate that threshold for growth”.

“I have seen a paper by the IMF from years back saying that, for a developing country, anything between 10-12 percent is optimal,” he recounted.

By Buertey Francis BORYOR

A new agricultural scorecard has exposed critical gaps in Ghana’s implementation of gender-responsive policies, despite having strong frameworks on paper.

The AGRA Gender Mainstreaming in Agriculture Scorecard (AGMAS) shows the country scoring 72 percent  for policy environment but dropping to 56 percent in implementation capacity.

The findings were unveilled at a high-level meeting in Accra, convened by Alliance for a Green Revolution in Africa (AGRA) to address persistent gender gaps in the food systems sector.

The event brought together government officials, policymakers and development partners to discuss enhancing gender-responsive decision-making in agriculture.

Winnie Osulah, AGRA’s Lead for Gender Integration, in a post-event media engagement stated that the scorecard assessed governments across three areas including: enabling environment, commitment and implementation capacity.

“This tells us that we already have the enabling environment, but we have a gap when it comes to implementation,” Osulah added, emphasising that policies gathering dust on shelves do not  benefit women who form 80 percent of Africa’s agricultural workforce.

She recommended immediate action to build officials’ capacity, urging a step-by-step approach to address the weakest scores first. “We need to sit down with governments and make sure they can implement the recommendations,” she added.

In his welcome address, Dr. John Jagwe – AGRA’s Country Programme Lead for Ghana – underlined why gender-equity is central to the organisation’s work.

“We know that you get more when you influence one woman than one man,” he said, announcing that 70 percent of new youth jobs in AGRA’s programmes will target young women.

The Minister for Gender, Children and Social Protection, Dr. Agnes Naa Momo Lartey, in a speech read on her behalf highlighted government efforts including the Affirmative Action Gender Equality Act 2024 and plans for a Women Development Bank.

“This demands a concerted effort by all women, especially those in leadership positions, to be the voice of the voiceless,” she stated, urging everyone’s commitment to creating spaces where women’s leadership influences policy.

There was consensus on need to bridge the implementation gap identified by the scorecard so as to unlock the full potential of women in agriculture.

By Elizabeth PUNSU, Kumawu

Kumawuman Rural Bank PLC at Kumawu in the Sekyere Kumawu District, in Ashanti Region, has recorded an impressive operational performance for the year ending December 31, 2024, achieving a 420.44 percent growth in profit before tax despite a challenging macroeconomic environment.

The Bank posted a profit before tax of GH₵24.52 million in 2024, up from GH₵4.71 million in 2023. Total revenue also rose sharply by 63.64 percent to GH₵69.96 million, compared to GH₵42.75 million in the previous year. Total expenditure increased marginally by 19.44 percent, reaching GH₵45.43 million.

Kumawuman Rural Bank’s total assets grew significantly by 52.57 percent to GH₵401.87 million from GH₵263.41 million in 2023. Deposits also expanded by 45 percent, growing from more than GH₵255 million to GH₵370.68 million, underscoring public confidence in the Bank’s services and products. The Bank’s share capital improved from GH₵3.67 million to GH₵4.70 million, representing a 28.01 percent increase.

Speaking at the 32nd Annual General Meeting (AGM) of Shareholders, the Chairman of the Board of Directors, Dr. Alex Adomako-Mensah, attributed the strong results to aggressive deposit mobilisation, product innovation, and enhanced risk management practices.

He emphasised that the Bank’s robust balance sheet and growing customer confidence has positioned it for sustained growth in the years ahead.

According to Dr. Adomako-Mensah, the high growth of deposits shows the confidence the general public and customers reposed in the Bank.

He therefore expressed appreciation for the continued support of the Banks loyal customers and the hard-working staff of the Bank adding that the board and management are resolute to continue to formulate strategic policies and plans to improve on deposit mobilisation while miniminsing the associated corresponding market risk.

He was of the belief that the strength of the balance sheet, risk management practices, customer confidence, and digital banking will be the catalyst that will drive its financial performance in the coming years.

Capital injection

According to Dr. Adomako-Mensah, in line with the Bank’s capital restoration plan initiated in 2022, shareholders have been urged to inject additional funds to meet the remaining GH₵3.3 million out of a total capital requirement of GH₵5.1 million.

Dividend payment

In a gesture that marks a new phase of growth, the Board of Directors recommended a dividend payment of GH₵900,590, ending a long wait for shareholders.

 Corporate Social Responsibilities

In pursuance of the Bank’s vision to promote community development in its catchment areas, and make progress towards a more inclusive, sustainable, and prosperous future, the Bank extended support to communities, Institutions, and Projects totaling almost GH₵ 500,000. Most of the support went into health, education and Agriculture projects.

Future Outlook

The Chief Executive Officer of the Bank, Evans Sarfo-Kantanka reaffirmed the Bank’s commitment to its strategic vision of becoming one of the top five Rural and Community Banks (RCBs) in Ghana.

In an interview with the Business & Financial Times, Mr. Sarfo-Kantanka explained that the Bank is pursuing this goal through aggressive deposit mobilisation, the introduction of innovative products and services, and strategies aimed at sustaining growth in deposits and total assets.

He noted that the board and management have also implemented robust credit and operational risk management measures to help reduce non-performing loans and improve asset quality. These measures, he said, will ensure the equitable distribution of the bank’s assets through quality lending and investments in low-risk, high-yield sectors to maximise profitability.

A fire has gutted parts of the China City Mall located at Santasi Star Junction in Kumasi. The incident reportedly began late Thursday afternoon, sending thick plumes of smoke into the sky.

Eyewitnesses say the cause of the fire remains unclear, but officials from the Ghana National Fire Service are currently on site working to contain the blaze.

No casualties have been reported so far, and efforts are underway to prevent the fire from spreading.