Ghana’s energy growth program is essential to industrialisation, according to Finance Minister Dr. Cassiel Ato Forson, who cautioned that electricity instability throughout Africa continues to cause significant economic losses and reduce manufacturing competitiveness.
Dr. Forson discussed Ghana’s domestic energy plan, stating that the government is increasing generation capacity to provide stability and assist industrial expansion, with the goal of adding 3,000 megawatts of installed generation capacity by 2030.
Dr. Forson stated at the Ishmael Yamson & Associates Business Roundtable on Thursday, May 28, that Ghana “deeply understands these challenges.”
As a result, we plan to construct 3,000 megawatts of power capacity by 2030.
“President John Dramani Mahama recently announced that the government of Ghana is building 1,200 megawatts. Our goal is to achieve 3,000 megawatts of additional installed capacity by 2030. Of this, 30% of this will be renewables,” Dr. Forson stated.
“We cannot industrialise in darkness. Energy remains central to Africa’s transformation. Yet over 600 million Africans still lack access to electricity. Africa collectively loses an estimated US$25 billion annually through power outages,” he said.
He pointed out that power interruptions cost Africa an estimated US$25 billion a year, characterising the situation as a significant barrier to value addition and productivity.
Given the continent’s abundance of gas, water, solar, wind, and vital minerals, Dr. Forson emphasised that the energy imbalance is intolerable.
“This is unacceptable, in fact, in a continent endowed with abundant gas, hydro, solar, wind, and critical minerals required for the global energy transition.”
“How can Africa speak meaningfully about industrialisation without reliable and affordable power?” he questioned.
He maintained that the transition from raw exports to value addition across important commodities will be necessary for the next stage of Africa’s industrial revolution.
“The next quarter of a century will therefore become Africa’s industrial century, not just extracting lithium, but refining lithium, not just exporting bauxite, but producing aluminium, not just exporting cocoa, but processing and building competitive value addition and value chain,” he said.
He went on to say that energy reliability is not just an infrastructural problem but also a requirement for job growth and industrial competitiveness.
“Trade integration is an economic survival strategy,” he said.
Additionally, he emphasised the potential of trade integration under the African Continental Free Trade Area (AfCFTA) to transform intra-African business as a supplementary economic driver.
Source: newsthemegh.com