President Nana Addo Dankwa Akufo-Addo of Ghana, has disclosed to the international community how reforms in his power sector have revived the sector leading to the resumption electricity exports to neighbouring countries, massive drop in tariffs paid by domestic and industrial consumers.
In his address at the Financial Times Africa Summit, in London, earlier this week, he revealed that now domestic consumers now enjoy reductions of up to 17.5 per cent, and a 30 per cent reduction for industries as part of drive to raise ease of doing business and stimulate industrial activities.
According to him, his administration having been dissatisfied with previous power sector reforms, has reviewed some 24 power purchase agreements, which led to the termination of 11 power deals and the rescheduling of 8 others, resulting in government treasury savings of about $7 billion in excess capacity charges over a 13-year contract period.
Akufo-Addo averred that his administration has issued 7-year and 10-year cedi-denominated bonds, totalling GH¢4.7 billion, which have halved the $2.4 billion energy debt it inherited.
He explained further that “Ghana, as a result, is today a net exporter of electricity. I was in Ouagadougou, capital of Burkina Faso, last Friday, for the inauguration, with the President of Faso, His Excellency Roch Marc Christian Kabore, of the Bolgatanga (capital of Ghana’s Upper East Region) to Ouagadougou Power Interconnection Project, which will see, daily, up to 100 megawatts of power supplied directly to Burkina Faso from Ghana.”
