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Ghana spends over $1 billion on electricity subsidies?

Ghana’s government is reportedly spending over $ 1 billion on electricity subsidies.

According to a close associate of the country’s President, the government is spending excessively just to keep “lights on.”

Power consumers in Ghana continue to get frustrated by power outages despite a new consortium taking over it’s power distributor.

Power Distribution Services, PDS Ghana Ltd under Philippines Meralco Consortium took over the previous Electricity Company of Ghana (ECG) with the hope of improving distribution services.

But there are occasional blackouts since the takeover in March of this year sparking outrage among Ghanaians.

Ghana’s government however continues to subsidize the cost of electricity but it doesn’t seem to be solving the generation and distribution issues.

This week the country’s finance minister will be delivering a mid-term budget statement in parliament.

On Saturday, Gabby Otchere Darko, a close associate of President Akufo Addo said continued subsidizing of energy may not be helpful.

He wrote on Twitter that “This year alone, $1 bn extra will be spent by Govt to support the cost of keeping your lights on.

Imagine what that can do? Will you pay a little more for power or Govt should go on subsidizing, denying other areas?”

Subsidizing the cost of electricity in Ghana is a political issue that often gets controversial.

Often political parties before getting into power promise to reduce the cost of electricity but then realize soon it is not sustainable.


There have been reactions to the statement from the government associate with many not willing to pay extra.


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