Businesses in Ghana could face severe operational disruptions if long-term energy sector reforms are not implemented.
Some businesses in the small scale space are already experiencing disruptions, and with planned maintenance shutdowns of key gas facilities, the crisis is expected to worsen, posing a significant threat to industrial operations and economic stability.
The Natural Resource Governance Institute (NRGI), a nonprofit organization that promotes transparency and accountability in the oil, gas and mining sectors has recently cautioned that gas supply deficits could worsen the country’s ongoing power crisis and significantly impact industrial productivity and economic growth.
According to the Institute, maintenance works on the West Africa Gas Pipeline and Jubilee facilities will result in supply deficits of up to 50 million standard cubic feet per day (MMscfd) by March 2025. The situation is expected to deteriorate further when planned shutdowns of ENI’s gas facilities in September and November 2025 push the shortfall to 102 MMscfd.
The Ghanaian economy, particularly the manufacturing and industrial sectors, has become increasingly dependent on natural gas for power generation. Since 2020, reliance on gas as the primary fuel source has surged, with government expenditure on natural gas expected to hit $1.22 billion in 2025—more than doubling from $455.8 million in 2019.
However, systemic inefficiencies, energy sector indebtedness, and inadequate gas processing capacity continue to threaten stable power supply, leaving businesses vulnerable to production losses and increased operational costs.
Despite recent complaints of intermittent power outages in parts of the country, government has assured the public it has secured adequate fuel supplies to prevent disruptions in power generation.
A prolonged power crisis could stifle economic growth by increasing the cost of doing business, disrupting supply chains, and discouraging investment in key industries. Already, manufacturers and other energy-intensive businesses are struggling with unstable power supply, forcing many to invest in costly backup generation systems, thereby increasing production costs and reducing profit margins.
The situation also poses risks to Ghana’s participation in the African Continental Free Trade Area (AfCFTA), as unreliable power supply could erode the competitiveness of local businesses within the regional market.
NRGI has urged government to take decisive action by reviewing Ghana’s gas master plan, aligning gas ambitions with realistic energy needs, and enhancing transparency in gas contract negotiations.
The institute warned against excessive long-term commitments to liquefied natural gas (LNG) contracts, which could worsen cashflow issues and lead to higher electricity prices for businesses and consumers alike.
The broader concern remains that Ghana’s power sector discourse often focuses on short-term crisis management rather than long-term sustainability. Experts argue that strategic reforms are needed to balance the energy mix, improve efficiency in power generation and distribution, and transition towards cost-effective renewable energy sources.
Without such measures, businesses will continue to bear the brunt of an unreliable power sector, hindering industrial growth and economic recovery.
Another contentious issue is the ongoing attempt to privatize the Electricity Company of Ghana (ECG), the country’s main power distributor. ECG has long struggled with financial losses due to inefficiencies, poor revenue collection, and mounting debt.
The government’s efforts to restructure ECG, including past failed concession agreements, have sparked debate over whether privatization is the best path forward or if internal reforms should be prioritized.
Critics warn that without addressing underlying governance and operational challenges, privatization alone may not resolve the crisis but rather lead to higher electricity tariffs for businesses and consumers.
