Ghana's Economic Troubles Cast Country into Darkness
Ghana's economic challenges have led to widespread power outages, as gas shortages at a major facility have plunged large areas into darkness, according to the country's power operator
Ghana is currently experiencing power blackouts in many areas due to a shortage of gas at a significant power facility. This issue is exacerbating the country's worst economic crisis in years. According to the Ghana Grid Company (GRIDCo), the power outages are a result of limited gas supply at a power installation in Tema, which has created a shortfall of 550MW during peak hours.
Ghana relies on natural gas to generate power, but the country has been struggling with frequent power outages, known as "dumsor."
"Dumsor is back in full swing without any announced schedules or communication, just frequent and random power cuts," a Ghanaian expressed on X, previously known as Twitter.
GRIDCo did not specify in their statement the expected timeframe for the restoration of electricity to the affected areas. CNN has contacted the agency for additional information.
Studies conducted recently project that the energy crisis in the country is expected to deteriorate in the upcoming years, commencing from this year.
The research and policy think tank, Centre for Socioeconomic Studies (CSS), emphasized the critical need for urgent, purposeful, and substantial investment in Ghana's energy supply to address the current precarious situation faced by the country. According to a CSS study published in June, the available data highlights the alarming and unstable condition of the country's energy provision, indicating an impending power crisis from 2023 onwards.
Residents have experienced an additional strain on their expenses due to the rise in energy tariffs, despite the nation facing power shortages. In the month of May, electricity tariffs surged by more than 18%, following an earlier increase of nearly 30% within the same year.
Recent data reveals yet another rise in energy bills, surpassing 4%, exacerbating the ongoing cost-of-living crisis.
Ghana has faced numerous economic challenges this year, including high inflation, a sharp decline in the local currency, increasing debts, and a federal budget that has been weakened by high energy sector costs and low public revenues, according to the World Bank.
These economic hardships have resulted in a surge of anti-government protests and heightened demands from the public to remove the central bank chair due to allegations of economic mismanagement.
The central bank said in July, it recorded a loss of 60.8 billion cedi (over $5 billion) last year, its biggest annual loss.
