Ghana is ready to re-engage with the United States Government for the potential reinstatement of $190 million under the Millennium Challenge Corporation (MCC), which was initially allocated to the country’s electricity sector. This announcement was made by President John Dramani Mahama during a courtesy call by Mr. Ousmane Diagana, the World Bank Vice President for West and Central Africa, in Accra.
Mr. Diagana, who was in Accra to witness the inauguration of President Mahama on January 7, 2025, discussed the importance of energy sector reforms to ensure sustainable growth and stability. In his remarks, President Mahama emphasized the need for his administration to address the systemic issues within the energy sector, including paying down existing debts and improving operational efficiency.
Reflecting on past efforts, President Mahama noted that during his tenure as Vice President under the late President John Evans Atta Mills, he signed the MCC agreement aimed at making Ghana the most efficient electricity producer in Africa and positioning the country as a key hub for electricity exports. He highlighted that while progress was made, the new administration’s handling of the Millennium Challenge Compact was disrupted, particularly with the dissolution of the Power Distribution Services (PDS) partnership, which had been a critical element in achieving efficiency in the sector.
“We left the government, and a new government took over the Millennium Challenge Compact,” President Mahama stated. “Unfortunately, the final phase, which focused on distribution, billing, metering, and overall efficiency, was not completed as planned. Now, with PDS history, we must reassess and find solutions to fix the Electricity Company of Ghana (ECG). Without addressing ECG’s issues, we will continue to face challenges within the entire power value chain.”
President Mahama reaffirmed Ghana’s commitment to improving the energy sector, calling for comprehensive reforms to ensure that the country can meet its growing energy needs while positioning itself as a leader in the West African energy market.