Ghana is on the brink of a major power crisis, and it’s all because of a massive debt owed to Karpowership, the company that operates a floating power plant in the Western Region.
The debt stands at a whopping $379 million, and Karpowership is threatening to shut down operations if it’s not paid. This news came to light during a meeting between the Minister of Energy and Green Transition, John Abdulai Jinapor, and Karpowership officials. The minister is urging Karpowership to be patient while the government tries to figure out a way to pay the debt.
He’s acknowledged that the situation is serious and has promised to find a sustainable solution to address the financial obligations.
The problem is, if Karpowership does shut down, Ghana could be in for some serious power shortages. We’re talking about businesses, industries, and households all being affected. The energy sector is already struggling with a huge financial burden, with debts totaling over $3 billion as of January 12, 2025. The International Monetary Fund (IMF) has been warning that if things don’t change, the sector could collapse altogether. The IMF is advising the government to cut costs, collect revenue more efficiently, and renegotiate power agreements to make sure everything is financially sustainable.
It’s not just Karpowership that’s causing problems, either. Other power producers, like Sunon Asogli and Amandi, have already shut down or reduced their output due to payment issues. This is all contributing to a growing power crisis in Ghana, and it’s getting serious. The government needs to act fast to address these issues and prevent a complete collapse of the energy sector.
