Ghana: U.S., Ghana Sign Compact to Transform Power Sector

press release

Washington, DC — The Millennium Challenge Corporation signed the largest U.S. Government-funded transaction of President Obama’s Power Africa initiative—designed to double access to power on the African continent—with the Government of Ghana. The Ghana Power Compact invests up to $498.2 million to support the transformation of Ghana’s electricity sector and stimulate private investment. Secretary of State John Kerry and President John Dramani Mahama of Ghana spoke at the compact’s signing ceremony, which was held during the U.S.-Africa Leaders Summit at the U.S. State Department in Washington, D.C.

The five-year compact is designed to create a self-sustaining energy sector in Ghana by reforming laws and regulations needed to transform the country’s power sector. The Ghana Power Compact is expected to catalyze more than $4 billion in private energy investment and activity from American and global energy firms in the coming years. The compact will support improved management of Ghana’s entire power system, providing a more robust framework for private investment as well as a more competitive process for the procurement of power from independent producers. It will address challenges in distribution, generation and access to energy in Ghana. Ghana will invest $37.4 million of its own funds in the initiative making the compact a total investment of up to $535.6 million.

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