Ghana set to Save $300m in Debt Restructuring Deal With IPPs – ACEP’s Ben Boakye Discloses
The Government of Ghana is on course to save about $300 million following a debt restructuring agreement with Independent Power Producers (IPPs), a move expected to ease pressure on the energy sector and the public purse.
The arrangement reduces Ghana’s outstanding debt to IPPs by 20 percent, trimming the figure from $1.5 billion to $1.2 billion.
This was disclosed by Ben Boakye, a board member of the government’s negotiating team, at the Future of Energy Conference (FEC) organised by the Africa Centre for Energy Policy (ACEP) in Accra on August 26, 2025. The conference was held under the theme, “Financing Africa’s Energy Future: Unlocking Investments for Energy Access and Economic Transformation.”
“It’s work in progress and we appreciate government’s effort to engage multiple stakeholders to find solutions to the problems of the energy sector and clean up the sector in general,” Mr Boakye said.
He noted that IPPs have shown “good faith” throughout the talks, agreeing to concessions that will deliver not only the US$300 million savings but also more than US$1 billion in future payment relief.
“I must say that the IPPs have been very magnanimous to give us some haircut. We are looking to save about $300 million on the debt and also over a billion dollars on future payments. At this point, we are close to $200 million, I suppose,” he added.
Mr Boakye further explained that the restructuring will likely extend Ghana’s repayment timeline to between four and five years, providing government with much-needed fiscal space.
“What we have done so far is to agree with a lot of the IPPs on a structure of payment, averagely four to five years to amortise the debt and, in return, get some concession from them,” he said.
The FEC, organised annually by ACEP, brings together policymakers, industry leaders, multilateral agencies, and civil society actors to discuss governance, innovation, and financing options to accelerate Africa’s energy transformation.
