Ghana’s urban water supply system is facing serious financial and operational pressure, with Ghana Water Limited (GWL) struggling with a growing supply gap, heavy debt, and large volumes of treated water being lost before reaching consumers, a new situational analysis has revealed.

The February 2026 report, which combines data from the Public Utilities Regulatory Commission (PURC) and GWL’s tariff proposals, indicates that the company currently produces about 945,275 cubic metres of water daily. This falls short of the national urban demand of 1.19 million cubic metres, leaving a deficit of 244,725 cubic metres each day, representing 21% of total demand.

The shortage has forced several urban communities across Ghana’s 16 regions to depend on irregular water supply and rationing schedules, affecting households, businesses, and critical public services.

A key concern highlighted in the report is the high level of non-revenue water, which refers to water produced but not billed due to leakages, theft, illegal connections, and faulty meters.

According to the analysis, 52.2% of water produced in 2024 was either lost or unaccounted for, far above the regulator’s benchmark of 45%.

The losses are largely linked to ageing pipelines, some over 50 years old, burst transmission lines, illegal connections, and meter tampering. Additional losses come from unbilled water use by some public institutions and illegal suction pumps connected directly to distribution lines.

GWL is also facing significant financial challenges. The company currently holds on-lent loans totalling GH¢14.63 billion, equivalent to nearly one-quarter of its revenue. Each month, the utility spends approximately GH¢38.94 million on debt servicing, representing 22.76% of its monthly income and limiting funds available for maintenance, infrastructure expansion, and system upgrades.

Most of the loans were contracted in foreign currencies such as US dollars and euros through government arrangements, exposing the company to exchange rate fluctuations.

The report also highlights declining payment compliance by Ministries, Departments and Agencies (MDAs). Payment rates from government institutions dropped sharply from 92.53% in 2022 to 18.40% in 2024, creating a substantial revenue shortfall.

Many public institutions reportedly cite the absence of budget allocations for water bills, while enforcement measures remain difficult due to the sensitive nature of disconnecting water supply to state facilities.

Illegal small-scale mining, widely known as galamsey, has been identified as a major environmental threat to Ghana’s water supply. The report notes that more than 11 water treatment plants have been affected by mining pollution, particularly those drawing water from the Birim, Pra, Bonsa, Offin, and Black Volta rivers.

The pollution has increased water treatment costs, forced temporary plant shutdowns, reduced production capacity, and created long-term risks to water quality and public health.

Much of Ghana’s water infrastructure is outdated, with several systems dating back to the colonial era. Current system utilisation stands at about 60% of installed capacity.

Energy costs also remain a major challenge, with electricity accounting for about 50% of water production costs and 27% of total operational expenses. This makes the utility highly vulnerable to changes in electricity tariffs and power supply interruptions.

Despite these challenges, the report notes that the recent appreciation of the Ghana cedi, which strengthened by about 24% against the US dollar between the end of 2024 and February 2026, has helped reduce foreign debt servicing costs and lowered the price of imported chemicals and equipment.

However, the analysis cautions that this improvement does not address deeper structural problems such as ageing infrastructure, high water losses, and weak revenue mobilisation.

GWL currently serves 986,078 active customers across 86 water systems nationwide, making it the country’s sole provider of urban water supply.

Experts warn that without urgent reforms, including tariff adjustments, infrastructure rehabilitation, improved billing systems, and stronger action against illegal mining, Ghana’s urban water security could face worsening shortages in the coming years.

The report concludes that while recent economic gains provide an opportunity for reform, long-term structural changes will be critical to ensuring a stable water supply for Ghana’s expanding urban population.