Ghana Settles Outstanding $1.47 Billion Energy Invoices

EI is building a system-level intelligence platform linking investment flows and project-level tracking of power system assets to installed capacity outcomes across African power markets. This lens is used to assess where investment is translating into delivery, and where system constraints persist.


Ghana’s Ministry of Finance (MoF) announced a major energy-sector arrears clean-up executed over the 2025 fiscal year, positioning it as a move to reduce the country’s contingent liabilities and restore confidence in the power value chain. It deployed $1.470bn in FY2025 for this reset, while also noting complementary measures: renegotiation of IPP agreements for “value for money” and the use of the Cash Waterfall Mechanism to keep current invoices largely up to date going forward. The centerpiece is the reset of payment discipline across gas-to-power and IPP obligations.

The MoF links the intervention to the Sankofa/OCTP gas supply chain and the World Bank Partial Risk Guarantee (PRG)—a key credit enhancement designed to protect project partners (ENI and Vitol).

What was paid (cash outflows in 2025)

1) World Bank PRG restoration (credit backstop reinstated)

Ghana MoF reports US$597.15m repaid (incl. interest) by 31 Dec 2025, fully restoring the PRG that had been depleted. The PRG (est. 2015) is described as a key safeguard linked to nearly US$8bn of private investment associated with Sankofa.

2) Gas invoice arrears cleared (Sankofa partners):

Approximately $480m paid between Jan–Dec 2025 to settle outstanding gas invoices owed to ENI and Vitol for electricity generation—MoF states this leaves Ghana “fully current” on these obligations.

3) Legacy IPP arears paid (published payee schedule)

MoF says $393m was paid to IPPs in 2025, with the breakdown below:

What may still be outstanding (and why investors should care)

Flow risk (not just “old debt”): Ghana’s IMF review (Dec-2025) projects an energy-sector shortfall of $1.103bn in 2026 (power -$925m, gas -$178m)—i.e., a recurring funding gap that can recreate payables if not closed structurally.

THE TAKEAWAY

Ghana’s $1.47bn 2025 outlay is a clear arrears clean-up and credit-support reset: PRG restored ($597.15m), gas invoices settled ($480m), and a named IPP arrears schedule paid ($392.81m).

For investors underwriting Ghana power/gas cashflows, the next diligence items are: (1) whether the 2026 shortfall ($1.10bn) is financed and structurally reduced, and (2) whether any remaining legacy IPP balances are formally quantified and reprofiled into a transparent payment plan.

Deals and Investments

Kenya: AfDB Approves $16.5M for OrPower Twenty-Two: A Major Win for Kenya’s IPP Landscape. AFDB

Benin: Izili Group Expansion: Acquisition of Qotto Bolsters Off-Grid Solar Reach in Benin and Burkina Faso. IZILLI

South Africa: Masdar & Octopus Energy Ink Landmark MOU to Catalyze $450M in African Clean Energy. MASDAR

Ghana: Spark+ Africa Lends $1M to VisionFund Microfinance to Fuel Clean Cooking Microfinance. Spark Fund

Zambia: Solar Boom in Zambia with 15 New Mini-Grids Officially Commissioned in Chadiza. Ignite Energy

Tunisia: Scatec Secures 75 MW Onshore Project in Tunisia with 25-Year PPA. SCATEC

Egypt: Cornex to Supply 6GWh of Clean Energy Tech to Egypt in Major Belt and Road Milestone. Cornex

Nigeria: The Future of Off-Grid: InfraCredit and First Electric Unlock Local Currency Debt for Mesh-Grid Tech. Infracredit

AXIAN Energy Secures $1M Norad Grant to Fast-Track Solar Projects in Four African Nations. Axian Energy

Regulatory and Policy Updates

South Africa: NERSA operationalizes tribunal power to enforce compliance in the electricity sector. NERSA

The Radar

29th – 31st January | Africa Energy Exhibition and Conference, UAE, Dubai. AFREEC

2-5 February | Nigeria International Energy Summit, Abuja NIES

28-29th February | International Conference on Grid Integration of Renewable Energy, Johannesburg, South Africa. ISSER

18th - 19th February | International Conference on Energy Transition and Sustainable Development, Cape Town, South Africa. SNRI

27 January |Masterclass: Tariffs & Regulatory Frameworks for Minigrid Deployment, Virtual. AMGP