Ben K.D. Asante, CEO of Ghana National Gas Limited, is advocating for a thorough review of the Cash-Waterfall mechanism to enhance the gas sector’s revenue management system. This call to action was made during the 2024 stakeholders’ roundtable, where Asante emphasized the importance of prompt enactment of the “Gas Act” to establish comprehensive guidelines for the energy industry ¹.
The Cash-Waterfall mechanism, also known as the escrow account, ensures that all suppliers of products and services to companies in the energy sector are paid promptly. This system aims to prevent debt accumulation in the sector, as seen in the case of Volta River Authority (VRA) owing Ghana Gas $735 million ¹.
Asante stressed that access to capital is crucial for infrastructure development, particularly in Africa. He also highlighted the need to expand gas usage beyond power generation, which currently accounts for 85-90% of Ghana’s gas usage. To achieve this, Asante emphasized the importance of the Gas Act, encouraging private sector participation, improving access to finance, and ensuring local content provisions ¹.
Minister for Public Enterprises Joseph Cudjoe also contributed to the discussion, urging a change in the public’s attitude towards electricity consumption and payment. He compared the electricity sector to telecommunications, noting that citizens don’t pressure the government for free data or airtime. Cudjoe advocated for privatization of parts of the electricity sector to introduce more efficient pricing mechanisms.
