Dr. Elikplim Kwabla Apetorgbor, the CEO of Independent Power Generators Ghana, has expressed strong opposition to the privatization of the Electricity Company of Ghana‘s (ECG) debt collection and billing services, describing the move as wasteful and counterproductive. He argues instead for the nationwide rollout of prepaid meters to improve ECG’s revenue mobilization.
President John Dramani Mahama in his first State of the Nation Address on February 27, 2025, revealed that ECG has accumulated a debt of GH¢68 billion, raising concerns about the company’s financial stability and its capacity to deliver reliable electricity services.
However, in an interview, Dr. Apetorgbor stressed that ECG should prioritize technological investments to tackle its recurring challenges. He also urged the company to adopt real-time monitoring technologies for voltage fluctuations to enhance service reliability.
“What we’re saying is that the tariffs should be cost-effective and should enable ECG to recover its most competitive or efficiency cost. We even proposed that stringent cost measures should be implemented in ECG’s administrative or operational activities. We looked at the issue of technology, we’re way behind technology in the power sector.
“There’s no where in the world or people going after customers to come and pay bills, implement pre-paid meters, automatically everybody pays for the services. Why waste resources to bring in companies to be going after customers for debt collection?. It’s a waste of resources,” he said.
Ghana’s economy is losing approximately 2% of its Gross Domestic Product (GDP) each year due to inefficiencies in the electricity sector, according to Dr. Cassiel Ato Forson, Minister of Finance.
Speaking at the National Economic Dialogue on Monday, Dr. Forson highlighted the Electricity Company of Ghana’s (ECG) failure to collect payments from all electricity consumers, leading to an annual revenue loss of about 25%. This translates to approximately $418.2 million in losses caused by power theft and non-payment.
He further disclosed that only 62% of the total energy purchased by ECG is actually paid for by consumers, and of that amount, only 65% is used to pay suppliers through the Cash Water Mechanism. He also criticized the existing electricity tariffs, stating that about 50% of the cost of providing electricity remains uncovered, adding that tariffs should not serve as compensation for ECG’s inefficiencies.
“These financial shortfalls have hindered the company’s ability to invest in infrastructure improvements and maintain a stable power supply,” Dr. Forson stated.
The impact of ECG’s inefficiencies extends beyond the energy sector, affecting industries such as agriculture, manufacturing, and general economic productivity due to unreliable electricity supply.
Ghana has faced longstanding challenges with its power sector, including the severe energy crisis between 2012 and 2015, commonly known as “dumsor.” In response, the government signed numerous power purchase agreements with independent power producers, leading to an oversupply of energy. By 2018, the country’s installed generation capacity was nearly twice its peak demand, forcing the government to pay for unused electricity. This situation has contributed to an annual deficit of approximately $1 billion in the energy sector.
Dr. Forson also raised concerns about the Energy Sector Recovery Program (ESRP), a roadmap designed to restore financial stability in the energy sector, stating that it is currently off track. He emphasized the need for urgent reforms and strategic measures to address these inefficiencies and drive economic growth.
As Ghana continues to grapple with energy sector challenges, experts argue that decisive action is required to prevent further financial losses and ensure a sustainable power supply for economic development.
With some of the world’s automotive giants setting up assembly plants in Ghana, the country is fast emerging as a hub for innovation, economic growth, and a new era in transportation. This transformation is undoubtedly positioning Ghana as a leader in automotive development within the sub-region and the rest of Africa.
Ghana’s automotive sector has traditionally been dominated by retailers of imported used vehicles, with only a few distributors handling new car sales. However, the landscape is gradually shifting with the implementation of the Ghana Automotive Development Program (GADP), which has attracted major global automakers. Currently, six automobile assemblers are registered under the GADP: Volkswagen, Toyota, Rana Motors, Sinotruck, Japan Motors, and Kantanka.
Volkswagen Ghana made history in August 2020 as the first automotive company to register under the GADP. Having assembled vehicles locally for the past five years, Volkswagen Ghana is now working closely with the government and key private sector players to introduce a vehicle financing facility aimed at making new cars more affordable for Ghanaian consumers.
Jeffrey Oppong Peprah, Managing Director of Volkswagen Ghana, noted the challenge of vehicle affordability in Ghana, where the majority of cars are purchased outright with cash. Unlike in developed markets where financing schemes enable consumers to spread payments over time, Ghanaian buyers often save for long periods to afford vehicles, which has led to a high demand for used cars.
Recognizing this challenge, Volkswagen Ghana is engaging stakeholders, including banks, insurance companies, and the Automobile Association, to create an incentivized loan system with lower interest rates tailored for vehicle purchases. Currently, commercial loan interest rates exceed 24%, making car financing inaccessible to many Ghanaians.
“We are engaging the government to see how we can implement a financing model with reduced interest rates, significantly lower than the prevailing market rates, to make new vehicles more accessible,” Oppong Peprah stated. “If we can develop a structure where consumers have the opportunity to spread payments over time, it will not only increase demand but also reduce the reliance on imported used cars.”
Volkswagen’s local assembly operations have already contributed to cost reductions, with import taxes waived for assembled units, leading to a price drop of over 30% compared to fully imported vehicles. If coupled with an efficient financing scheme, locally assembled cars could become even more affordable, eventually competing with used vehicles in terms of price.
The initiative aligns with Ghana’s broader automotive development agenda, which seeks to encourage local vehicle assembly and reduce the country’s dependence on second-hand imports. By making financing more accessible, Volkswagen Ghana hopes to boost new vehicle sales while ensuring that consumers have access to reliable and warranty-backed automobiles.
Raju Parwani, Automobile industry watcher
Automobile industry analyst Raju Parwani told The High Street Journal that the success of the proposed financing model could transform Ghana’s automotive industry, creating a sustainable ecosystem that benefits both consumers and industry players.
He noted that increased sales of locally assembled vehicles could help curb the importation of used cars, which often have less efficient engines and outdated emission control technologies.
“Many imported used vehicles have higher carbon dioxide emissions compared to newer models due to their aged combustion systems,” he explained.
Parwani also praised initiatives where institutions facilitate vehicle acquisition for their staff directly from manufacturers, describing such arrangements as forward-looking and beneficial to both employees and the industry.
The streets of Ghana are being haunted by a silent predator, one that comes in small, deceptively labeled packets. It’s not just another imported product; it’s an illegal opioid cocktail fueling addiction and despair. And at the heart of this crisis? A pharmaceutical company thousands of miles away in India, making millions from Ghana and West Africa‘s misery.
A BBC Eye investigation has revealed that Aveo Pharmaceuticals, based in Mumbai, is behind the illegal production and export of a highly addictive opioid mix. Branded under different names, these pills, widely known in Ghana as ‘Tramol’, are a potent combination of tapentadol and carisoprodol, smuggled into the country and peddled on the streets.
In cities like Tamale, Kumasi, and Accra, young men, hoping to work long hours or simply escape reality, are turning to these dangerous drugs. Instead of boosting their energy, however, many are left slumped over in a daze, disconnected from the world around them.
The drugs consume the sanity of those who abuse them, like a fire burns when kerosene is poured on it.
During a recent operation, volunteers confiscated packets labeled ‘Tafrodol’, bearing the branding of Aveo Pharmaceuticals. Similar products have been seized in other Ghanaian towns, confirming the widespread nature of the crisis.
Undercover Operation Unmasks Indian Supplier
To trace the source of these drugs, BBC sent an undercover operative into Aveo’s factory in India, posing as a businessman from Nigeria looking to distribute opioids. Using a hidden camera, the journalist recorded one of Aveo’s directors, Vinod Sharma, proudly displaying the very pills that were found on Ghana’s streets.
According to the BBC documentary, Sharma did not hesitate to explain the appeal of his product. “If users take two or three pills at once, they can ‘relax’ and get ‘high’,” he admitted on camera. When asked about the harmful effects, he shrugged, saying, “This is very harmful for health, but nowadays, this is business.”
Image credit: BBC
Public records show that Aveo Pharmaceuticals, along with its sister company Westfin International, has been shipping millions of these tablets to Ghana and other West African nations, worsening the region’s opioid crisis.
A Wider Regional Crisis
Beyond Ghana, these drugs are wreaking havoc in Nigeria and Côte d’Ivoire, where teenagers mix the pills with alcoholic energy drinks for a stronger high. According to the BBC documentary, Nigerian authorities estimate that about four million citizens abuse opioids, posing a severe threat to the country’s future.
In response, Ghanaian authorities have begun cracking down on opioid imports, but experts warn that without stricter enforcement and regional cooperation, illicit suppliers will continue exploiting loopholes to flood West Africa with these dangerous pills.
Calls for Urgent Action
Health professionals have raised alarms over the deadly combination of tapentadol and carisoprodol. Dr. Lekhansh Shukla, an assistant professor at India’s National Institute of Mental Health and Neurosciences, explained in the BBC documentary that the mix induces dangerously deep sleep, often leading to breathing difficulties, seizures, and fatal overdoses.
“This is not something that is licensed for use anywhere in the world,” Dr. Shukla stressed. “It’s a very dangerous combination.”
Despite growing evidence against Aveo Pharmaceuticals, both the company and its director, Vinod Sharma, have remained silent in response to the allegations. Meanwhile, the Indian drugs regulator, CDSCO, has promised to crack down on companies violating export regulations.
For now, however, Ghanaian youth remain vulnerable to these lethal opioids, as traffickers and manufacturers continue profiting from addiction and despair.
African leaders have taken a major step toward securing the continent’s financial future with the approval of a new financial stability fund designed to prevent debt crises before they spiral out of control.
The African Development Bank (AfDB), which will host the fund, called the African Financial Stability Mechanism (AFSM), announced that it will have its own credit rating, allowing it to raise money from international capital markets. This means African nations struggling with mounting debt repayments may soon have a much-needed financial cushion.
The idea for the fund was first proposed in February 2022, when African leaders called on the AfDB to lay the groundwork for its creation. Following an African Union summit in Ethiopia over the weekend, the AfDB confirmed it is now pushing ahead with finalizing agreements and securing ratifications from member states.
Why This Matters
Many African economies are under serious financial pressure, juggling external commercial debt repayments, sluggish revenuegrowth, rising government spending, and even the growing impacts of climate change. Yet, unlike Europe and Asia, Africa has never had its own regional financial safety net—until now.
“If implemented as designed, the AFSM can save African sovereigns approximately $20 billion in debt servicing costs by 2035,” said Kevin Urama, AfDB vice president and chief economist, in an interview with Reuters.
How Will It Work?
Membership in the fund will be voluntary, open to any African Union member state that wants to participate. Interestingly, the AfDB has also made provisions for up to 20% of the fund’s membership to come from non-African countries, as long as African nations maintain majority control.
The new fund could be a game-changer for countries like Kenya and Gabon, which have faced investor concerns over their ability to repay international Eurobonds. These concerns led to a sharp depreciation of Kenya’s currency in 2023 and a Fitch rating downgrade for Gabon just last week.
The AFSM will not function as a bailout fund, but rather as a safeguard to help countries avoid debt crises before they escalate.
“The core of AFSM’s mandate is not to support the provision of bailouts to African states but to prevent them,” said AfDB.
African startups, launched 2025 with remarkable momentum, as funding in the ecosystem surged by 240% year-on-year to reach $289 million in January, representing a significant jump from $85 million recorded in January 2024.
Despite the comparatively lower figures in 2024, that month still ranked as the second-best January for startup funding since 2019, only surpassed by January 2022 during the investment boom, according to Africa: The Big Deal, a leading funding tracker.
The report cited that equity financing dominated the funding landscape, accounting for over 90% of the total capital raised, equating to $262 million. This figure marks the second-highest amount raised through equity financing in any January over the past six years.
Furthermore, the four largest funding deals in January 2025 originated from Nigeria, Kenya, Egypt, and South Africa which collectively secured roughly 60% of the continent’s total capital for the month.
Some notable startups included;
PowerGen, an energy-focused startup, which raised over $50 million to develop a scalable platform for distributed renewable energy solutions across Africa.
LemFi, a fintech company, secured $53 million to fuel its expansion into Asia and Europe.
Naked, an insurtech firm, raised $38 million in a Series B round to enhance automation and broaden its product offerings.
Enko Education attracted $24 million to expand its network of schools throughout Africa.
The recent boost in funding shows more African startups are expanding beyond the continent. To spread the benefits, other African countries need better systems to support and retain successful businesses. The strong start in January 2025 is a good sign, especially after the tough investment climate in 2023 and 2024. Last year, African startups raised just $1.5 billion in equity, making up less than 1% of global funding.
