Energy analyst, Senyo Hosi, has described Ghana’s persistent power outages—commonly known as dumsor—as primarily a financial challenge rather than a purely technical one.

According to him, the country’s electricity supply difficulties are rooted in deep-seated liquidity constraints within the power sector, which continue to undermine reliable generation and distribution.

Speaking on the issue, Hosi explained that while Ghana has made significant investments in generation capacity over the years, the inability of sector players to meet their financial obligations has created a cycle of inefficiencies. Power producers, he noted, are often not paid on time, affecting their ability to procure fuel and maintain operations.

He said “

We have had a big deficit in infrastructure investment to support the entire system. Initially, it was around the generation. There was quite a significant investment at the time and it was helpful.

“There is a problem with our power pricing and also our technical management, which is also curable by infrastructure investment. We have certain parts of the infrastructure for distribution defective, and we can only correct that by spending more money to correct that, and so there is a need for money.”

Hosi highlighted that institutions such as the Electricity Company of Ghana (ECG) continue to face challenges in revenue mobilisation, including losses from illegal connections and inefficiencies in billing and collection. These issues, he said, directly affect the ability of the Volta River Authority (VRA) and independent power producers to sustain steady electricity supply.

He further noted that without urgent financial restructuring and improved governance in the sector, intermittent power outages could persist despite adequate installed capacity.

Hosi also called for a stronger political will to enforce payment discipline across the board, including among state institutions, which are often cited as major defaulters.

Ghana has struggled with recurring bouts of dumsor over the years, with recent concerns resurfacing among businesses and households about the stability of power supply.

While acknowledging ongoing efforts by the government to stabilise the sector, Hosi maintained that lasting solutions would depend on addressing the underlying financial bottlenecks, improving efficiency, and restoring confidence among investors.

He urged policymakers to prioritise reforms that ensure cost-reflective tariffs, reduce technical and commercial losses, and enhance transparency in the management of the power sector.