Ghana cannot afford the dreaded era of erratic power supply, widely known as dumsor, again, as it seeks to build economic resilience and better the lives of Ghanaians.
The World Bank’s latest report confirms that dumsor crippled industries, slashed jobs, and scared away investors from investing in Ghana
The scars of the 2012–2016 power crisis are still visible, serving as a stark reminder that unreliable electricity is not just an inconvenience; it is an economic threat.
According to the World Bank’s October 2025 Africa Pulse Report, Ghana’s last major electricity crisis caused a 12.3% drop in foreign direct investment (FDI) into non-energy sectors and an estimated 5 percentage point reduction in national employment.
Behind these figures were collapsed factories, struggling SMEs, and thousands of lost livelihoods.
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The crisis didn’t just dim lights; it dimmed opportunity. Businesses that relied on steady electricity for production were forced to scale back operations or shut down entirely. Many redirected scarce resources into the self-generation of power. Capital was used to buy and power generators.
Others spent heavily on solar backups just to stay afloat. This shift, occasioned by the erratic power supply, came at a steep price, draining funds that could have gone into expansion, hiring, or innovation.
“The Dumsor power crisis in Ghana in 2012–16 led to a 12.3 percent reduction in the number of foreign direct investment (FDI) investments in non-energy sectors. Firms that were frequently exposed to outages exhibited lower levels of productivity. Factors such as curtailment of production during periods of outages and reallocation of investments from productive capital toward in-house electricity self-generation, which is more expensive than grid-supplied electricity, contribute to the low productivity,” portions of the report cited by The High Street Journal read.
It added that, “In Ghana, for instance, the 2012–16 power crisis resulted in a reduction of employment by about 5 pp.”
Economists have long warned that unreliable electricity acts as a “silent tax” on productivity, especially for manufacturing and services, the very sectors expected to drive job creation and competitiveness under the African Continental Free Trade Area (AfCFTA).
The World Bank study confirms that every percentage point increase in outage intensity across Africa can reduce the number of firms operating by up to 1.7%.
The scars from the past make it imperative for the country to ensure that it does not return to the dreaded “dark”. Already, institutions, including the World Bank and the International Monetary Fund (IMF) are calling for drastic reforms in the country’s energy sector.
The government has also introduced a GHC1 per litre levy with the proceeds ringfenced to deal with the debt-ridden sector.
There are also calls for an overhaul of the Electricity Company of Ghana (ECG) to go through a reset to make it efficient. A petition has reached the president by a business group demanding that the government halt the vicious cycle of masking ECG’s inefficiencies with tariffs.
As the nation positions itself as a regional trade hub; economists and development analysts say affordable and reliable power is a non-negotiable priority. Frequent outages don’t only disrupt production; they undermine confidence in the investment climate.
With the World Bank’s latest report sending the country down memory lane on the impact of the dumsor, the government has no choice but to ensure that stable and affordable power becomes the mainstay of the economy.
