Will a Stronger Cedi Relieve Electricity Cost Burdens for Ghanaians?

The document analyzes the impact of the Ghana cedi's 24.5% appreciation against the U.S. dollar in early 2025 on electricity costs. While macroeconomic indicators have improved, the power sector remains burdened by 80 billion cedis in debt, high transmission and distribution losses of 35.26%, and a projected US$2.23 billion financing gap. The brief examines potential outcomes for the September 2025 tariff review, including modest reductions, tariff freezes, performance-linked adjustments, or debt-for-efficiency swaps, arguing that currency strength alone cannot resolve deep-rooted structural weaknesses.

• The Ghana cedi appreciated by approximately 24.5 percent against the U.S. dollar during the first five months of 2025, coinciding with a decline in inflation from 23.8% in January to 21.2% in April.
• Ghana's energy sector is characterized by severe financial instability, with total debt reaching 80 billion cedis and a projected financing gap of US$2.23 billion for 2025.
• Operational inefficiencies are significant, with the Energy Commission’s 2025 National Statistics Bulletin reporting total transmission and distribution losses of approximately 35.26%.

APA

Okyere, M. A., & Odarno, L. (2025). Will a Stronger Cedi Relieve Electricity Cost Burdens for Ghanaians? Clean Air Task Force. https://www.catf.us/resource/stronger-cedi-relieve-electricity-cost-burdens-ghanaians/

Chicago

Okyere, Michael Adu, and Lily Odarno. Will a Stronger Cedi Relieve Electricity Cost Burdens for Ghanaians? Clean Air Task Force, 2025. https://www.catf.us/resource/stronger-cedi-relieve-electricity-cost-burdens-ghanaians/.

Wikipedia

{{cite report |last1=Okyere |first1=Michael Adu |last2=Odarno |first2=Lily |title=Will a Stronger Cedi Relieve Electricity Cost Burdens for Ghanaians? |publisher=Clean Air Task Force |date=27 June 2025 |url=https://www.catf.us/resource/stronger-cedi-relieve-electricity-cost-burdens-ghanaians/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{okyere2025will, author = {Okyere, Michael Adu and Odarno, Lily}, title = {{Will a Stronger Cedi Relieve Electricity Cost Burdens for Ghanaians?}}, institution = {Clean Air Task Force}, year = {2025}, month = jun, url = {https://www.catf.us/resource/stronger-cedi-relieve-electricity-cost-burdens-ghanaians/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }