Ghana said it had cleared $1.47 billion worth of energy sector debt.
The West African nation was last year among 23 sub-Saharan African countries at risk of debt distress, according to the World Bank, and rising debt service costs have long stymied government spending in vital areas such as education, health, and infrastructure.
The country’s accumulating energy debt had also left Ghanaians grappling with increased power outages and disrupted a critical World Bank guarantee to maintain payments for private sector gas supplies in the event of a government shortfall.
This “represented a serious governance failure that undermined Ghana’s international credibility,” said the country’s finance ministry, explaining that the new administration which took office this month had resolved the matter through “prudent financial management.” The clearing of the arrears has helped restore operational confidence among independent power producers, Reuters reported.