The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has expressed serious concerns about the state of Ghana’s energy sector, describing it as one that has been “systematically decimated” by mismanagement and inefficiencies. Boakye’s comments reflect the ongoing challenges in the sector, which has faced issues such as unreliable power supply, rising costs, and a lack of strategic investment. His critique points to the need for urgent reforms and improved governance to ensure the sector can meet the growing demands of the country’s economy and its people. In an opinion piece addressed to President-elect John Mahama, Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), highlighted critical challenges within Ghana’s energy sector that demand urgent attention. He emphasized that the sector has been “systematically decimated,” with a few benefiting at the expense of the public, who bears the burden through the budget, levies, and high margins.
Boakye revealed that the energy sector wastes over GH¢50 billion annually, an amount that exceeds the nation’s annual oil revenue, posing a serious threat to the country’s economic stability. He also pointed to the bloated structure of energy agencies and companies as one of the most glaring issues, indicating inefficiencies and waste within the system. He called for immediate reforms to address these challenges and prevent further destabilization of Ghana’s economy. Benjamin Boakye further criticized the overstaffing within Ghana’s energy sector, noting that many agencies and companies are now 4 to 5 times larger than necessary to perform the same tasks they did eight years ago. This overstaffing, he argues, is largely driven by political appointments, which have resulted in redundant directorates and unnecessary institutions, all of which place an undue burden on the public.
A particularly pressing concern is the deteriorating state of the Electricity Company of Ghana (ECG), which Boakye described as a major drain on the national budget. He lamented that political mismanagement has caused ECG to become the single largest dependent of the national budget, highlighting the extent of inefficiency and poor governance within the sector. These issues, according to Boakye, must be addressed urgently to prevent further damage to the country’s economy and energy infrastructure. Benjamin Boakye pointed out that mismanagement, along with procurement abuses and exchange rate manipulations, is severely threatening Ghana’s upstream oil and gas sector. One of the consequences is the uncertainty surrounding gas payments to investors, which risks further destabilizing the sector.
He also highlighted the inefficiencies in the downstream petroleum sector, where inflated margins are imposed on the public to sustain political interests. This, according to Boakye, leads to significant financial waste. He identified over GH¢6 billion in what he termed the “black tax,” funds that, if redirected properly, could be used to address urgent development needs across the country.
Furthermore, Boakye expressed concern about the declining state of the upstream oil and gas sector, emphasizing the need for immediate action to restore investor confidence. Without such reforms, he warned, the sector’s challenges could become even more detrimental to the country’s economic stability. “We are witnessing its decline unfold before our eyes,” Ben Boakye stated, expressing deep concern about the deteriorating state of Ghana’s energy sector. He stressed that strategic action could unlock $2 billion in investments by 2025, out of a potential $6 billion in the medium term, underscoring the significant economic opportunities that could be tapped with the right reforms.
Boakye emphasized that addressing the challenges in the energy sector requires a “surgical examination” to identify and correct inefficiencies. He urged President-elect Mahama to act decisively to restore order and efficiency in the sector, warning that continued mismanagement could further damage the country’s economic prospects.
