Ghana Faces $2 Billion Annual Loss Risk Amid Power Crisis, Warns Africa Sustainable Energy Centre

Africa Sustainable Energy Centre (ASEC) has raised serious concerns over Ghana’s ongoing power crisis, warning that the country could lose up to $2 billion annually if frequent electricity outages continue. In a press release dated April 18, 2026, the organization described the situation as a “national economic emergency” that could weaken economic growth and reduce investor confidence.

According to ASEC, the repeated power cuts are already affecting key sectors of the economy, such as manufacturing, healthcare, education, and small and medium-sized enterprises. Many businesses are being forced to depend on costly backup generators to maintain operations. This has increased their expenses, damaged sensitive equipment, and lowered overall productivity. The think tank also highlighted that the long-term impact could be more severe, including job losses, slower industrial growth, and a decline in the standard of living.

ASEC’s Executive Director, Justice Ohene-Akoto, stated that electricity is essential for any modern economy to function effectively. He explained that the issues in Ghana’s power sector are complex and include limited power generation capacity, irregular fuel supply, weak transmission systems, and inefficiencies in electricity distribution.

To address these challenges, ASEC has proposed a six-point plan aimed at improving the power sector. One of the key suggestions is the use of Artificial Intelligence for predictive maintenance. This would help detect possible equipment failures in advance and reduce unexpected breakdowns in power plants and gas infrastructure.

Another recommendation focuses on improving revenue collection. ASEC suggested strengthening systems at the Electricity Company of Ghana by introducing smart meters and considering strategic privatization to reduce power theft and billing errors.

The think tank also emphasized the need to diversify Ghana’s energy sources by increasing investments in solar, wind, and hydro power, while ensuring a stable fuel supply for thermal plants. In addition, it called for the modernization of aging transmission and distribution networks and the adoption of advanced grid monitoring systems.

ASEC further recommended promoting energy efficiency among consumers to reduce pressure on the grid, especially during peak demand periods. Lastly, it stressed the importance of improving governance in the energy sector by increasing transparency in procurement processes and better coordination among stakeholders.

Ohene-Akoto warned that delaying action would only increase the economic damage. He noted that while Ghana has the technical ability to build a stable and sustainable energy system, strong political will and timely investment are essential. ASEC has urged the government, private sector, and development partners to work together urgently to prevent further economic losses and stabilize the country’s power supply.