Outgoing U.S. Ambassador to Ghana, Virginia Palmer, has stressed that bold and immediate reforms to the Electricity Company of Ghana (ECG) are crucial if Ghana hopes to qualify for a future Millennium Challenge Compact (MCC).
In an upcoming interview on *The Point of View* with Bernard Avle on Channel One TV, Ambassador Palmer reflected on the setback of the second MCC Compact, which saw the cancellation of over \$190 million in funding due to implementation failures. She described the cancellation as a deep personal disappointment and a lost opportunity for Ghana.
“I told former President Nana Addo Dankwa Akufo-Addo that I would work with him to try for another compact,” Palmer said. “But there were missteps with the second compact, and we had to cancel \$190 million.”
While she acknowledged that the shape and timeline of a new MCC deal remain uncertain, Palmer made clear that Ghana’s eligibility hinges significantly on its ability to fix critical structural issues — chief among them, the ailing ECG.
“The ECG is bleeding more than we thought,” she warned. “There are massive losses either at the poles or in the accounting process, and these threaten not only the economy but Ghana’s ability to access international partnerships like the MCC.”
Palmer praised Ghana’s strong scores in governance and anti-corruption — key indicators for MCC eligibility — but stressed that demonstrating success in past compacts and improving ECG’s financial viability are equally essential.
“Good governance, fighting corruption, and showing that the previous compact was successful — those are the real indicators that matter,” she said.
She reiterated her commitment to supporting Ghana’s eligibility efforts if a new compact becomes available but made it clear that action must come from within.
“Reforming ECG is not just about ticking a box for the MCC — it’s about laying the groundwork for a stronger, more resilient economy.”
Her comments come as Ghana continues to grapple with persistent power outages and mounting financial strain within the energy sector — challenges Palmer says must be addressed head-on for long-term stability.
