Home Business Ghana Businesses Decry Resurgent Power Outages Amid Grid Reliability Concerns

Ghana Businesses Decry Resurgent Power Outages Amid Grid Reliability Concerns

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Accra Skyline Dumsor
Accra Skyline Dumsor

Ghana’s recent wave of unannounced power outages has sparked alarm among businesses and households, reviving memories of the prolonged “dumsor” crises that plagued the country between 2012 and 2016.

Over the past month, frequent blackouts have disrupted operations in key commercial areas of Accra, Kumasi, and Takoradi, though utility providers have yet to declare a formal load-shedding schedule or acknowledge systemic failures.

The Electricity Company of Ghana (ECG) has attributed some outages to localized faults and maintenance work in sporadic public notices. However, the irregularity and geographic spread of disruptions often lasting hours without clear timelines for restoration have deepened skepticism about grid stability.

Businesses, particularly small and medium enterprises reliant on consistent electricity, report mounting losses from spoiled goods, idle machinery, and increased generator dependency. “We schedule production around unpredictable outages, but it’s crippling our margins,” said a food processing plant manager in Tema, reflecting broader frustrations.

The outages compound financial strain on consumers following a 29% average hike in electricity tariffs implemented in January 2024. Residential users in areas like East Legon and Kasoa describe cycles of power cuts occurring up to five times weekly, with voltage fluctuations damaging appliances. “We pay more but get less reliability,” noted a retail shop owner in Accra’s Osu district.

While Ghana’s total installed generation capacity exceeds 5,300 MW against peak demand of around 3,700 MW analysts point to legacy challenges: aging infrastructure, erratic gas supply for thermal plants, and $1.5 billion in sector debt hindering maintenance investments. A 2023 World Bank report warned that underfunded distribution networks and commercial losses from theft or non-payment remain critical vulnerabilities.

ECG and the Ghana Grid Company (GRIDCo) have not detailed plans to address the current outages, but energy experts urge transparency to prevent panic. “Proactive communication is essential to maintain public trust,” said energy economist Dr. Theo Acheampong. “Ghana cannot afford a return to the opacity that worsened past crises.”

The resurgence of power challenges threatens to undermine Ghana’s fragile economic recovery, which has been buoyed by recent currency stabilization and improved fiscal metrics. Industries contributing 28% of GDP, including manufacturing and agro-processing, remain heavily dependent on reliable electricity. Persistent outages also risk derailing digital transformation initiatives, as frequent disruptions impede tech hubs and data centers.

The government’s 2023 Energy Sector Recovery Plan, backed by the IMF, prioritized reducing ECG’s operational losses and upgrading transmission infrastructure. However, implementation delays and competing fiscal pressures have slowed progress. With Ghana aiming to position itself as a regional energy exporter through the West Africa Power Pool, resolving domestic grid instability is not just a local imperative but a regional credibility test.

For citizens and businesses, the situation underscores a disconnect between tariff increases and service quality. As public patience wears thin, authorities face mounting pressure to clarify the root causes of outages and expedite solutions before temporary faults escalate into another full-blown crisis.

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