The Independent Power Generators (IPGs) say Ghana is now ripe for private sector investment in the country’s energy sector after the government’s settlement of the power sector legacy debts owed to the power generators.
This relief is coming after years of financial strain and strained trust between the government and the power generators over non-payment of debt.
With this payment, Ghana’s power sector may be turning a decisive corner. In a statement released a few hours after the announcement of the Government of Ghana on Monday, the IPGs affirmed that, indeed, the state has settled a substantial portion of long-standing arrears owed to them.
They describe the act as a major breakthrough that restores confidence and reopens Ghana’s doors to fresh energy investment.
The IPGs praised the Ministry of Finance and the Ministry of Energy and Green Transition for what they called decisive leadership in tackling debts that had weighed down the sector for years. The payments made in 2025, they said, go beyond routine bookkeeping. They signal a clear intent by the government to clean up inherited problems and reset the power market on firmer ground.
“The clearance of these long-outstanding obligations, including the payments made in 2025 to the Independent Power Generators, represents a major milestone in restoring financial stability and operational confidence across the power sector. This achievement reflects decisive leadership, disciplined fiscal management, and a clear commitment by the Government to resolving inherited structural challenges that have constrained the sector for several years,” the statement maintained.
The impact of this move, the IPGs say, is immediate and practical. Clearing arrears improves cash flow, allows companies to service loans, maintain plants properly, and plan ahead with certainty.
The IPGs singled out the Ministry of Finance for mobilising the funds needed to address the backlog, and the Ministry of Energy and Green Transition for enforcing reforms such as the Cash Waterfall Mechanism.
This mechanism ensures that revenue collected in the power sector is shared in an agreed order, improving payment discipline and reducing the chances of arrears building up again.
Beyond the immediate relief, the IPGs stressed that the settlement will strong and positive signal to investors watching Ghana from the sidelines. By honouring contractual obligations and strengthening sector governance, the government is rebuilding credibility in a market that had become known for payment risks and uncertainty.
According to the IPGs, this renewed trust places Ghana in a stronger position to attract new capital, modern technology, and long-term partnerships in power generation, including cleaner and more efficient energy solutions. In a competitive global market where investors are cautious, predictability and discipline matter just as much as natural resources or demand growth.
“These actions have sent a powerful signal to both domestic and international investors that Ghana is firmly committed to honouring its contractual obligations, strengthening sector governance, and rebuilding credibility in its power market. As a result, investor confidence in Ghana’s energy sector has been meaningfully restored, positioning the country to attract new capital, technology, and long-term partnerships,” they noted.
The IPGs also reaffirmed their commitment to Ghana’s energy security and economic transformation, pledging continued cooperation with government agencies to sustain a reliable power supply and support ongoing reforms. They emphasised efficiency, transparency, and value for money as shared goals across the entire power value chain.
