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Energy Minister Shuts Down All but One ECG Account, Retains Single Holding Account at GCB Bank

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Government Consolidates All ECG Bank Accounts at GCB to Curb Mounting Power-Sector Debt

ACCRA, 19 May 2025 — The Ministry of Energy and Green Transition has moved every bank account of the Electricity Company of Ghana (ECG) into a single holding account at state-owned GCB Bank PLC, aiming to tighten financial oversight and stem rising liabilities across the power sector.

Energy Minister John Jinapor confirmed the measure in an interview with Citi FM on Monday. He said ECG’s scattered accounts—and its failure to follow the “cash waterfall mechanism,” which distributes power-sector revenue among generators, grid operators and fuel suppliers—had fuelled debts and eroded confidence among industry players.

“I’ve closed all of ECG’s accounts except one,” Mr Jinapor stated. “That single account has been transferred to GCB so disbursements can be monitored through monthly reviews.”

How the new system works

  • Single account, monthly disbursement: ECG will be barred from releasing funds until the cash-waterfall committee meets on the 27 th of each month to allocate revenue.

  • End to weekly overdrafts: The company’s previous practice of drawing bank overdrafts to make weekly payments to independent power producers (IPPs) racked up interest charges, the minister said.

  • Enhanced oversight: The Public Utilities Regulatory Commission (PURC) and IPPs will receive regular statements to verify adherence to the agreed waterfall splits.

Debt snapshot

  • ECG arrears to IPPs: GH₵ 1.79 billion

  • Total generation-related debt: GH₵ 3 billion

Reaction and next steps

Although some stakeholders have resisted the tougher controls, Mr Jinapor argued the consolidation will “safeguard the long-term health of the power sector” and stabilise electricity supply by ensuring producers are paid on time.

The ministry is also weighing limited private-sector participation in ECG’s billing and collection to boost revenue without outright privatisation. Companies would operate under commission-based contracts in designated zones, the minister said.

Long-term plans include a new gas-processing plant to cut generation costs, while continued talks with operators such as Karpowership have so far averted supply disruptions.

Consumers, Mr Jinapor added, should ultimately see more reliable power delivery as cash flows become more predictable for generators and suppliers.

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Media Responsibility in Digital Age: Mahama calls for Accountability in new Media Landscape

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President John Dramani Mahama has emphasised the critical need for media regulation in the era of social media during a recent presidential media encounter. He said, the world is moving from traditional media to new media platforms like TikTok, Facebook, and X, highlighting the transformative shift in information dissemination.

The President warned about the potential dangers of unregulated digital communication, noting that “anybody with a phone and a camera can now report news or comment on national issues.” He stressed the importance of holding these new content creators accountable to prevent potential social conflicts.

He said, if the government don’t regulate that sector, it can lead this nation to war, pointing to specific instances where inflammatory social media content has fuelled tensions, such as in the Bawku situation and Gonja conflicts.

While acknowledging the removal of criminal libel laws, Mahama underscored that legal mechanisms still exist to address harmful content, particularly hate speech and incitement to violence on digital platforms.

The call for responsible digital communication comes as a critical intervention to maintain social harmony and prevent the misuse of communication technologies.

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Kojo Preko Dankwa Challenges Mahama on Galamsey; President Insists Emergency Powers Not Needed Yet

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President John Dramani Mahama has dismissed calls for the declaration of a state of emergency in the fight against illegal mining, popularly known as galamsey, despite growing concerns over its impact on water supply.

 

The debate comes on the back of a proposed 280% increase in water tariffs by the Ghana Water Company Limited (GWCL), which partly attributes the hike to the rising cost of treating water polluted by illegal mining activities.

 

During a public engagement, a participant asked the President whether the government would consider invoking a state of emergency to address the menace.

 

Responding, President Mahama said his administration was not yet prepared to take such a drastic step. He explained that existing laws already give security agencies and regulators enough authority to arrest offenders, seize equipment, and enforce forest protection measures without resorting to extraordinary powers.

 

“I’ve been reluctant to implement a state of emergency in the galamsey fight because we’ve not exhausted the powers we already have,” the President stated. “Implementing a state of emergency might sound nice, but it should be the last resort.”

 

He further noted that declaring a state of emergency would require parliamentary approval and could only last for a limited duration, making it a complex measure to apply effectively.

 

“The areas where galamsey is taking place cover several districts of our country. If we were to declare a state of emergency, we would need to delineate those areas clearly. For now, I believe we have given the security services enough powers to deal with those involved,” Mahama added.

 

Illegal mining has long plagued Ghana, contaminating rivers, destroying farmlands, and threatening sustainable access to potable water. While government crackdowns have intensified in recent years, the practice remains widespread, putting pressure on the country’s water resources and prompting difficult policy choices.

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Agri-Impact CEO Warns: Agriculture Budget Too Small to Drive Ghana’s Economic Transformation

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The Chief Executive Officer (CEO) of Agri-Impact Group, Daniel Acquaye, has criticized the government’s allocation to the agriculture sector in the 2025 budget, describing it as inadequate to drive the country’s economic transformation.

 

Speaking at the PwC post-budget digest in Accra, Mr. Acquaye said only GH¢1.5 billion (about $100 million), representing 0.54 percent of the GH¢279 billion national budget, was set aside for agriculture. He stressed that this amount was insufficient, noting that achieving rice self-sufficiency alone would require over $100 million—equivalent to the entire agricultural allocation.

 

He warned that the underfunding contradicted government’s stated objective of making agriculture the backbone of economic growth.

 

Mr. Acquaye urged government to establish an Agriculture Fund, similar to the Ghana Education Trust Fund (GETFund), to guarantee sustainable financing for the sector. According to him, while education produces skilled labour, there is little investment in industries such as agriculture that can employ those graduates. Proper funding, he argued, would tackle youth unemployment, boost food security, and stimulate rural economies.

 

“A billion dollars from agriculture creates more jobs and opportunities than the same amount from oil or mining,” Mr. Acquaye emphasized.

 

The call aligns with the Malabo Declaration under the Comprehensive African Agricultural Development Programme (CAADP), where African Union members—including Ghana—committed to allocating at least 10 percent of national budgets to agriculture and achieving six percent annual growth in the sector.

 

Meanwhile, PwC Ghana’s Senior Country Partner, Vish Ashiagbor, noted that although the agriculture allocation looked small, complementary projects such as the GH¢10 billion “Big Push” for infrastructure and planned agri-zones could indirectly support the sector. He described the 2025 budget as a “good start,” but cautioned that effective implementation would be key to realizing its intentions.

 

On the increase in the Growth and Sustainability Levy to three percent, Mr. Ashiagbor expressed concern that sudden tax hikes could destabilize mining companies’ long-term planning, though he acknowledged government’s pressing need to raise revenue in a tight fiscal space.

 

Both speakers agreed that while the budget signaled intent, a stronger focus on execution and sustainable sector-specific funding was crucial to unlocking agriculture’s full potential in Ghana’s economy.

 

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