President John Dramani Mahama has attributed Ghana’s ongoing power sector challenges to the mismanagement of the Energy Sector Levies Act (ESLA) funds, which were intended to address accumulated debts in the energy sector.
Speaking during a meeting with Independent Power Producers (IPPs) on January 13, 2025, President Mahama expressed disappointment over the diversion of ESLA revenues by the previous administration.
“Revenues from ESLA were mismanaged, and what should have been used to pay off a significant portion of the accumulated debts was instead used for other purposes,” Mahama stated.
ESLA’s Intended Purpose Neglected
The ESLA, introduced to resolve debts and ensure sustainability in the energy sector, was meant to provide critical support to Independent Power Producers and other stakeholders. However, according to President Mahama, these funds were not directed towards their intended purpose, exacerbating the sector’s challenges. 
Commitment to Addressing IPP Concerns
President Mahama assured the IPPs of his administration’s commitment to resolving their pressing concerns. He emphasized the importance of restoring trust and financial discipline within the sector, promising collaborative efforts to stabilize the power supply.
“We will work with Independent Power Producers to resolve these concerns and restore the energy sector’s viability,” he said.
Key Issues Highlighted
- ESLA funds were misallocated, worsening energy sector debts.
- Mismanagement of funds undermined support for Independent Power Producers.
- President Mahama has pledged to engage IPPs and restore sector stability.
The President reiterated his administration’s focus on transparency and financial responsibility in addressing Ghana’s power sector challenges.
