Ghana Roundup: Fuel allowances scrapped, carbon credit, national airline revival

First international carbon credit sale

Ghana has completed its first sale of carbon credits under the Paris Agreement’s Article 6.2 mechanism. The project, spearheaded by Spark+ and Envirofit, involved distributing improved cookstoves across Ghana, which significantly reduce carbon emissions compared to traditional methods. Switzerland, through the KliK Foundation, purchased these credits, which means the emission reductions generated in Ghana will be counted towards Switzerland's national climate targets.

National airline revival

The Ghanaian government is actively engaging TAP Portugal to revive the defunct national carrier. This move is part of a strategic initiative to re-establish Ghana as a regional aviation hub and increase trade, tourism, and connectivity within West Africa and beyond. Discussions with TAP Portugal include possible technical partnerships and even equity participation, highlighting the government's desire to ensure sustainability and competitiveness in the aviation sector. A revived airline could also create jobs, improve export logistics, and enhance Ghana’s soft power globally.

Fuel allowances scrapped for public leaders

In a bold reform, President John Dramani Mahama has announced the complete abolition of fuel allowances for cabinet ministers and political appointees. The government will no longer provide free fuel or allowances for official and private vehicle use by appointed leaders. This move is expected to reduce government expenditure, promote fiscal discipline, and support Ghana’s transition to sustainable energy use. It also aligns with broader public expectations for transparency and efficiency in governance, especially as fuel costs remain a major economic pressure point.

Rollout of fuel levy

As part of its ongoing efforts to rescue the energy sector from financial instability, Ghana's government has rolled out a GH₵1 (USD 0.096) per litre levy on petrol and diesel. This new charge is designed to raise funds to support power sector reforms, clear legacy debts, and ensure a reliable electricity supply. The levy is expected to contribute significantly to the Energy Sector Recovery Programme, which faces challenges such as rising generation costs, arrears to independent power producers, and infrastructure deficits.

France and Ghana progress on €2.5 billion debt restructuring deal

Ghana and France are advancing negotiations on a €2.5 billion bilateral debt restructuring agreement, which forms part of Ghana’s broader effort to stabilise its macroeconomic framework and meet IMF reform expectations. The deal seeks to extend payment timelines and possibly reduce debt servicing burdens, offering Ghana breathing room amid high public debt and inflation. France’s willingness to engage bilaterally demonstrates confidence in Ghana’s recovery trajectory and strengthens bilateral ties between the two nations.