Ghana’s urban water supply system is currently under severe financial and operational strain, according to a February 2026 situational analysis that synthesizes data from the Public Utilities Regulatory Commission (PURC) and Ghana Water Limited (GWL)’s tariff proposals. The state-owned utility grapples with a significant supply deficit, a massive debt burden, and substantial non-revenue water losses, affecting nearly one million active customers across 86 water systems nationwide. This crisis forces many urban communities to endure intermittent supply and rationing schedules, impacting households, businesses, and essential services.

GWL currently produces approximately 945,275 cubic metres of water daily, falling short of the national urban demand of 1.19 million cubic metres. This results in a daily deficit of 244,725 cubic metres, equivalent to 21% of demand. In terms of gallons, national demand stands at about 350 million gallons per day, while production is only 220 million gallons, leading to a daily shortfall of 130 million gallons. Accra alone faces a deficit of 73 million gallons against an estimated daily demand of 210 million gallons. This persistent shortfall is exacerbated by the shutdown of the desalination plant in October 2025, following financial disputes that are now in international arbitration, and by delays in critical infrastructure projects like the Aveme Water Treatment Plant and the second phase of the China Gezhouba project.

One of the most alarming findings of the report is the scale of non-revenue water (NRW), which accounts for 52.2% of all water produced in 2024. This figure significantly exceeds the PURC’s target benchmark of 45%. These losses stem from multiple factors, including ageing pipelines—some over 50 years old—burst transmission mains, widespread illegal connections, meter tampering, and failures in metering systems. Commercial losses are further compounded by unbilled consumption by public institutions and the use of illegal suction pumps that draw water directly from distribution lines.

Financially, GWL faces a major crisis, with a total on-lent loan burden of GH¢14.63 billion, nearly a quarter of its revenue. The utility allocates approximately GH¢38.94 million each month to service debt, representing 22.76% of its monthly income. This leaves limited funds for essential infrastructure expansion, maintenance, and system upgrades. The Managing Director of GWL, Adam Mutawakilu, has stated that the company’s financial position, characterized by a debt-to-equity ratio of about 192%, makes it unable to raise funds independently from commercial lenders for major investments. GWL recorded losses of GH¢4.8 billion in 2023 and GH¢3.1 billion in 2024, despite generating GH¢1.8 billion to GH¢2 billion in annual revenue, which is insufficient to cover operational costs and salaries.

A significant challenge contributing to GWL's revenue gap is the drastic decline in payment compliance by Ministries, Departments, and Agencies (MDAs). The report indicates that government institutions' payment rates plummeted from 92.53% in 2022 to just 18.40% in 2024. Many public institutions reportedly claim a lack of budget allocations for water bills, while enforcement measures, such as disconnecting state facilities, prove difficult due to their sensitive nature.

Environmental threats also severely impact water supply, with illegal small-scale mining, known as 'galamsey', identified as the single greatest environmental threat. More than 11 water treatment plants, including those drawing from the Birim, Pra, Bonsa, Offin, and Black Volta rivers, are affected by pollution from these mining activities. This pollution increases treatment costs, forces plant shutdowns, reduces production capacity, and poses long-term risks to water quality and public health.

Ghana’s water infrastructure suffers from severe ageing; much of it dates back to the colonial period. Major water facilities like the Candy plant (1950), Kpong old Works (1954), and Weija plant (1960) form the backbone of current supply and are operating below capacity due to obsolete equipment and deteriorating pipelines. Average system utilization is only 60% of installed capacity. Replacing the country’s ageing water transmission pipelines alone would cost more than GH₵3.5 billion (US$356 million), a sum far beyond GWL’s current financial capacity. Electricity also represents a substantial portion of costs, accounting for 50% of water production costs and 27% of total operational expenses, making the utility vulnerable to energy price fluctuations and power disruptions.

Addressing the issue of pipeline damage, Mr. Mutawakilu urged the public to promptly report any construction activities that may interfere with water supply. He highlighted that many pipelines, especially those linked to projects awarded by district assemblies, are damaged by contractors who fail to notify GWL, leading to prolonged water shortages for residents. Early public reporting enables GWL to deploy technical teams for swift assessment and repair.

While the recent appreciation of the Ghana cedi (strengthening by about 24% against the US dollar between end-2024 and February 2026) has offered temporary relief by easing foreign debt servicing and reducing the cost of imported chemicals and equipment, the report cautions that this does not address the underlying structural issues. Experts warn that without urgent and decisive reforms—including tariff adjustments, infrastructure upgrades, improved billing systems, and stronger enforcement against illegal mining—Ghana’s urban water security faces worsening shortages in the coming years. Sustained capital investment in both water production and distribution infrastructure is crucial to match population growth and prevent escalating service disruptions.