Ghana’s urban water supply system is under acute financial and operational strain, according to a February 2026 situational analysis drawing on data from the Public Utilities Regulatory Commission (PURC) and Ghana Water Limited (GWL).

The state-owned utility is grappling with a widening supply deficit, mounting debt obligations, and extensive non-revenue water losses, affecting nearly one million active customers across 86 water systems nationwide.

As a result, many urban communities face intermittent supply and rationing, disrupting households, businesses, and critical public services.

GWL currently produces about 945,275 cubic metres of water per day, well below the estimated urban demand of 1.19 million cubic metres—leaving a daily shortfall of 244,725 cubic metres, or 21% of demand.

In gallon terms, production stands at 220 million gallons per day against a demand of 350 million, creating a 130-million-gallon deficit. Accra alone faces a 73-million-gallon shortfall relative to its 210-million-gallon daily demand.

The deficit has been worsened by the shutdown of the desalination plant in October 2025 due to financial disputes now in international arbitration, alongside delays in key projects such as the Aveme Water Treatment Plant and the second phase of the China Gezhouba project.

Non-revenue water (NRW) remains one of the system’s most critical weaknesses, accounting for 52.2% of total production in 2024—well above the PURC benchmark of 45%.

Losses are attributed to ageing pipelines, some more than 50 years old, burst transmission mains, illegal connections, meter tampering, faulty metering systems, and unbilled consumption by public institutions.

The widespread use of illegal suction pumps further compounds technical and commercial losses, undermining both supply reliability and revenue collection.

Mounting Debt, Environmental Pressures and Structural Constraints

GWL’s financial position is equally alarming. The utility carries an on-lent loan burden of GH¢14.63 billion and spends approximately GH¢38.94 million monthly on debt servicing—about 22.76% of its income.

With a debt-to-equity ratio of roughly 192%, the company is effectively unable to raise additional commercial financing for infrastructure expansion.

Losses reached GH¢4.8 billion in 2023 and GH¢3.1 billion in 2024, despite annual revenues of between GH¢1.8 billion and GH¢2 billion.

A sharp decline in payment compliance by Ministries, Departments and Agencies, from 92.53% in 2022 to 18.40% in 2024, has further weakened revenue streams, as many public institutions cite the absence of budget allocations for water bills.

Environmental degradation from illegal small-scale mining, known as galamsey, has intensified operational challenges.

More than 11 treatment plants drawing from major rivers including the Birim, Pra, Bonsa, Offin and Black Volta are affected by pollution, raising treatment costs, reducing output capacity and occasionally forcing shutdowns.

Meanwhile, much of Ghana’s water infrastructure dates back to the colonial era, with facilities such as the Candy plant (1950), Kpong Old Works (1954) and Weija plant (1960) operating below capacity due to obsolete equipment and deteriorating pipelines.

System utilization averages only 60% of installed capacity, and replacing ageing transmission pipelines alone would cost over GH¢3.5 billion (US$356 million)—far beyond current fiscal capacity.

Electricity accounts for half of production costs and 27% of total operational expenses, exposing the utility to energy price volatility and power disruptions.

Although the Ghana cedi has appreciated by about 24% against the US dollar between end-2024 and February 2026—providing temporary relief by easing foreign debt servicing and reducing import costs for chemicals and equipment—experts caution that structural weaknesses remain unresolved.

Without comprehensive reforms, including tariff adjustments, infrastructure rehabilitation, improved billing and enforcement mechanisms, and decisive action against illegal mining, Ghana’s urban water security risks further deterioration amid rising population pressures and growing demand.