Ghana’s Energy and Green Transition Minister John Jinapor has mandated all government ministries, departments, and agencies (MDAs) to include electricity payments in their annual budgets, marking a significant policy shift toward fiscal responsibility in public energy consumption.
The directive comes as the country faces an urgent fuel shortage that threatens power generation.
Speaking before Parliament’s Energy Committee on May 15, Jinapor emphasized that no institution including the presidency, would be fully exempt, though critical services like hospital wards, laboratories, and school lecture halls would receive limited relief. “Every MDA must budget for and pay its electricity bills,” he stated, adding that Parliament is finalizing the exemption criteria.
The policy arrives alongside a stark warning from the Energy Ministry: Ghana needs GH₵1.1 billion immediately to secure fuel for power plants, with current reserves dwindling to days’ worth of supply. Rising energy demand and financial constraints have exposed vulnerabilities in the country’s power sector, prompting calls for structural reforms.
Analysts note this move reverses decades of subsidized electricity for government entities, a practice that contributed to the power sector’s $2.6 billion debt. While the directive aims to curb wasteful consumption, its implementation faces challenges, including potential resistance from agencies accustomed to unrestricted energy use. The success of the policy may hinge on strict enforcement and transparent monitoring as Ghana balances fiscal discipline with maintaining essential services.
Ghana’s energy crisis reflects broader challenges across Africa, where underfunded utilities struggle with rising demand. The government’s tough stance signals recognition that sustainable power supply requires breaking from past subsidy dependencies a lesson other energy-strapped nations may soon confront.
