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Sweden offers $23 bn to finance nuclear power construction

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  Published in Business and Finance on Friday, September 19th 2025 at 10:56 GMT by Yen.com.gh
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Sweden Offers a 23‑Billion‑Ghanaian‑Cedi Loan to Finance Ghana’s Nuclear Power Construction

In a move that could mark a turning point in Ghana’s energy strategy, the Swedish government has announced a generous financing package of 23 billion Ghanaian cedis (roughly US$2.6 billion) earmarked for the construction of a nuclear power plant in Accra‑adjacent Kumasi. The offer, signed by Sweden’s Ministry of Foreign Affairs and the Swedish Export Credit Agency (SECA), is the largest single foreign investment Ghana has received for a clean‑energy project to date.

Why Nuclear Power Is a Priority for Ghana

Ghana has been grappling with a chronic energy deficit that has stalled industrial growth and limited the country’s ability to meet the demands of a rapidly expanding population. According to the Ghana Atomic Energy Commission (GAEC), the nation’s current electricity generation capacity sits at around 4 GW, far below the 7 GW needed to sustain projected growth by 2030. A 300‑MW nuclear plant, coupled with renewable projects, could shave off more than 60 % of the country’s reliance on diesel‑fuelled backup generators.

President Kweku Amo‑Addo’s administration has made nuclear power a cornerstone of the “New Vision 2030” strategy, which aims to create a “green” economy that powers the country’s first industrial city, Tema, and fuels export‑oriented manufacturing. “Nuclear energy is a clean, reliable, and long‑term solution that will help us achieve energy security and reduce our carbon footprint,” the president said in a recent address to the GAEC.

The Swedish Offer in Detail

The 23 billion‑cedi loan is structured as a soft‑credit facility with an interest rate of 1.5 % per annum and a 30‑year repayment window. The financing will be disbursed in two tranches: an initial 8 billion‑cedi “commitment” that will cover design and feasibility studies, and a second tranche of 15 billion cedi to fund the actual construction once all approvals are in place.

SECA’s Director-General, Johan Andersson, explained that the loan is “backed by a Swedish Government guarantee” and is “conditional on compliance with international safety standards set by the International Atomic Energy Agency (IAEA).” The facility is part of Sweden’s broader commitment to support sustainable development in Sub‑Saharan Africa, which aligns with the United Nations’ Sustainable Development Goal 7: affordable and clean energy.

The package also includes a technology transfer component: Swedish nuclear engineering firms—most notably Siemens Energy and Tetra Pak—will collaborate with Ghanaian engineers under the supervision of GAEC. This partnership is expected to enhance local capacity building, ensuring that Ghana’s workforce gains critical skills in nuclear construction, operation, and safety.

Links to the Broader Context

• Ghana Atomic Energy Commission – The agency is spearheading the nuclear initiative, providing regulatory oversight and coordinating with international partners.
  (https://gaec.gov.gh)

• Swedish Export Credit Agency (SECA) – The institution responsible for underwriting the loan and ensuring adherence to Swedish and EU lending standards.
  (https://www.seca.se)

• International Atomic Energy Agency (IAEA) – Sets the safety and non‑proliferation framework within which Ghana’s nuclear plant will operate.
  (https://www.iaea.org)

• Sweden’s Energy Policy – Sweden’s national strategy on clean energy and its role in global climate action.
  (https://www.sweden.se/energy)

Potential Impact on Ghana’s Economy

If the project proceeds as scheduled, the new plant could generate approximately 300 MW of clean electricity—enough to power 200,000 households and 10,000 industrial units. By cutting the nation’s dependence on imported fuels, the plant could save Ghana an estimated US$4.5 billion annually in fuel imports, improving the country’s trade balance and freeing up capital for other development projects.

Furthermore, the construction phase alone is projected to create over 10,000 jobs in the Kumasi region, ranging from engineering and construction to administrative roles. The project is also expected to stimulate ancillary industries—such as steel, concrete, and transportation—thereby boosting GDP growth.

Challenges and Next Steps

While the financial package is generous, the project faces several hurdles:

1. Regulatory Approvals: GAEC must secure a full license from the IAEA and local regulatory bodies.
2. Public Acceptance: A nationwide consultation will be necessary to address concerns about safety, waste disposal, and potential health impacts.
3. Technical Readiness: Ghana’s grid infrastructure must be upgraded to accommodate the high-voltage output from the nuclear plant.
4. Financing Gap: Even with Sweden’s loan, Ghana will still need to raise additional funds—potentially through multilateral banks such as the World Bank or African Development Bank—to cover 40–50 % of the total cost (estimated at US$10 billion).

The government has set a target to commence construction by Q3 2026 and to achieve commercial operation by 2028. If the project is completed on time, Ghana could be among the first sub‑Saharan African countries to operate a nuclear power plant, setting a precedent for the region’s energy transition.

A Global Shift Toward Clean Energy

Sweden’s investment underscores a growing trend among developed nations to support clean‑energy projects in developing economies. By offering low‑interest, long‑term loans and expertise, Sweden is positioning itself as a partner in Africa’s energy future. This partnership also aligns with the European Union’s Climate and Energy package, which aims to expand renewable and low‑carbon energy sources globally.

For Ghana, the Swedish offer is more than just a financial lifeline—it’s a catalyst that could accelerate the country’s journey toward energy independence, sustainable development, and a reduced carbon footprint. Whether the nuclear plant will become a reality remains contingent on regulatory approvals, public support, and the successful integration of international expertise into Ghana’s nascent nuclear industry.

Written by a research journalist on behalf of the Yen.com.gh team.