Written By: By Jemosop Faith, Faith specializes in energy, climate, and renewables, transforming complex policy discussions into accessible, everyday conversations, she is a writer at Africa Digest News backed by 2+ years of focused experience
A significant moment unfolded in the corridors of Ghana’s Ministry of Finance, one that could redefine the trajectory of Ghana’s power sector and ripple across the continent.
The Finance Minister of Ghana met with representatives from Cenpower Generation Company Limited and South Africa’s Export Credit Insurance Corporation (ECIC). At stake was the future of energy stability in Ghana and the viability of a collaborative financial model that may serve as a blueprint for Africa’s infrastructure financing.
The roots of this meeting dig deep into years of economic friction, unfulfilled promises, and the unrelenting demand for sustainable power. For years, Ghana has wrestled with the challenge of paying its independent power producers in full and on time.
Power is the lifeblood of modern economies. Industries grind to a halt without it, homes go dark, and investor confidence wavers.
One of Ghana’s vital players in this ecosystem is Cenpower, the operator of the 350-megawatt Kpone independent power plant. Since beginning commercial operations in 2021, the plant has supplied power to over 1 million Ghanaian homes, serving as a bedrock in the country’s quest for energy security.
However, delayed payments from the Electricity Company of Ghana have placed severe financial strain on Cenpower and other power producers, turning a thriving sector into one gasping for financial air.
The government, recognizing the urgency, had approved a structured payment system called the Cash Waterfall Mechanism (CWM) in 2017. The idea was to ensure that revenues collected from electricity consumers are distributed transparently and fairly, giving priority to top-tier creditors like independent power producers and fuel suppliers.
The CWM suffered from chronic implementation delays. By early 2025, despite efforts to resuscitate the program, liquidity challenges persisted, prompting industry stakeholders, energy think tanks, and civil society to sound the alarm.
This is where South Africa enters the frame, through its export credit agency, the ECIC. South Africa had backed a $447 million senior finance facility used in developing the Kpone power plant.
This financial support came with expectations, chiefly that the project would remain financially viable. When Cenpower felt the pinch due to Ghana’s arrears, the ECIC had every reason to be concerned. South Africa’s stake was about ensuring its financial institutions could play a transformative role across Africa.
The March 17th meeting presented a rare opportunity for government officials, energy producers, and financial guardians to find a way forward. While the specifics of the closed-door discussion weren’t made public, the Finance Minister’s post on X painted a picture of renewed commitment. Words like “unwavering dedication” and “real progress” echoed from his statement, signaling that Ghana is serious about fixing its power sector.
This wasn’t just about Cenpower or the ECIC; it was about preserving Ghana’s broader economic ambitions. The power sector is the engine room of industrialization, the bedrock of digital transformation, and the foundation for foreign investment.
Cenpower’s contribution to Ghana’s grid is massive, accounting for about 10% of the country’s total installed capacity and nearly 15% of its thermal generation. Without financial stability, the entire sector could be thrown into disarray.
The Finance Minister’s pledge to clear all outstanding legal arrears could inject much-needed liquidity into the power ecosystem. Cenpower, freed from the chokehold of delayed payments, can continue operating at full capacity, potentially scaling operations to meet growing demand.
Other independent power producers may breathe easier, and foreign investors may see Ghana as a reliable destination.
For the ECIC, the meeting confirmed that its risk exposure in Ghana was being managed with seriousness. The success of this engagement positions it as a trailblazer in financing African infrastructure.
South Africa aspires to play a leadership role on the continent, and this partnership provides a compelling case study of how export credit can catalyze real development.
The CWM’s past failures were due to a lack of execution. This renewed commitment must come with transparency, timelines, and accountability. The Ghanaian public deserves to know how funds are being allocated, independent power producers need clear payment schedules, and institutions like the ECIC need assurances that their partners are willing and able to follow through.
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The broader vision of a sustainable and thriving power sector opens the door to transformative reforms. Could the CWM be expanded to include renewable energy providers? Could the ECG undergo structural reforms to improve its revenue collection systems? Could Ghana become a hub for regional energy trading? These are attainable goals provided that the political will is sustained.
This is a turning point for how African nations collaborate on development. The partnership between Ghana and South Africa shows what’s possible when economic interests align with political action.
It tells a story of mutual benefit, where Ghana strengthens its infrastructure and South Africa deepens its role as a financial powerhouse. Above all, it sends a message that Africa is building, reforming, and committing to its own solutions.
The coming months will be critical. Will the promises made on March 17 materialize? Will Cenpower see its arrears cleared and its operations expanded? Will the ECIC walk away satisfied? Only time will tell, but this meeting represents a shared vision between governments, corporations, and finance to solve a real problem with real consequences. Ghana has taken a bold step forward.
