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Ghana FinMin: Energy sector debt a risk to economy
Ghana’s Finance Minister Ken Ofori-Atta has declared a state of emergency in the country’s energy sector, stressing that the sector is facing serious challenges. Ofori-Atta noted that at the heart of the challenges is the take-or-pay contract signed by the National Democratic Congress (NDC). Paa Kwasi Anamua Sakyi, Executive Director of Institute for Energy Security joins CNBC Africa for more.
Wed, 31 Jul 2019 14:30:21 GMT
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AI Generated Summary
- The impact of take-or-pay contracts on Ghana's energy sector and financial stability
- Challenges posed by underutilized energy capacity and mounting debt
- Proposed solutions to address the crisis and the path to sustainable recovery
Ghana's Finance Minister, Ken Ofori-Atta, has raised the alarm on the country's energy sector, highlighting serious challenges that need urgent attention. At the heart of these issues lies the controversial take-or-pay contracts signed during the National Democratic Congress (NDC) administration. Paa Kwasi Anamua Sakyi, the Executive Director of the Institute for Energy Security, provided crucial insights into the implications of these contracts and the potential solutions to the crisis. In a recent interview on CNBC Africa, Sakyi delved into the complexities of Ghana's energy landscape, shedding light on the financial risks and operational hurdles facing the sector. The discussion brought to the forefront the urgent need for decisive action to rescue Ghana's energy industry from impending collapse. With mounting debt, underutilized capacity, and financial instability plaguing the sector, stakeholders are grappling with tough decisions to safeguard the economy and ensure sustainable energy access for the nation. The call for a state of emergency by the finance minister underscores the gravity of the situation and the imperative for bold reforms to avert a looming disaster. As Ghana confronts these challenges head-on, the road ahead demands strategic planning, innovative solutions, and collaborative efforts to steer the energy sector towards stability and growth.
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