Ghana’s electricity, gas, and water sectors have received GH₵ 265.82 billion in credit between 2018 and July 2024, according to Ghana Statistical Service (GSS) data.
Yet, despite these significant financial injections, challenges in power supply, gas reliability, and water accessibility continue to weigh heavily on consumers and businesses alike.
While credit allocations have remained substantial, they have not followed a consistent upward trend, fluctuating based on economic conditions, policy shifts, and sector-specific demands. In 2022, credit peaked at GH₵ 46.06 billion, but this was followed by a decline to GH₵42.34 billion in 2023.
The first half of 2024 has recorded GH₵ 21.82 billion, signaling the possibility of a further drop if the government does not increase funding in the second half of the year.
Despite these investments, electricity remains unstable, with frequent load shedding, high tariffs, and financial distress in state-owned utilities.
The West African Gas Pipeline (WAGP), a critical supplier of natural gas for power generation, has proven unreliable, leading to fuel switching to expensive alternatives like diesel, which further increases electricity costs.
Power sector debts continue to accumulate, with utilities struggling to recover revenue due to inefficiencies and losses in distribution.
Meanwhile, water supply issues persist, especially in rural and peri-urban areas, where residents rely on boreholes and untreated water sources. While urban infrastructure has improved, aging pipelines, poor distribution networks, and the effects of climate change have made reliable water access a growing concern.
With credit allocation slowing in 2024, the government faces a tough balancing act, maintaining investments in these critical sectors while ensuring financial sustainability.
