Ghana’s plan to privatize the Electricity Company of Ghana (ECG) has hit turbulence as workers protest what they describe as a rushed process lacking transparency.
The Public Utilities Workers Union (PUWU) has raised red flags at all 92 ECG district offices and 14 regional centers, signaling alarm over the government’s handling of the proposed Private Sector Participation (PSP) arrangement.
The controversy deepened after Finance Minister Ken Ofori-Atta revealed cabinet approval for the PSP plan – a disclosure that caught labor representatives off guard. “We learned about this critical decision through media reports, not official channels,” said PUWU Deputy General Secretary Rev. Enoch Paul Hayes. “This backdoor approach undermines trust in the process.”
The union’s grievances center on three key issues: the absence of meaningful stakeholder engagement, concerns about job security for ECG’s 6,000 employees, and fears that privatization could prioritize profits over reliable electricity access for Ghana’s 33 million citizens. Industry analysts note the tension reflects broader debates about reforming Africa’s energy sectors while balancing public and private interests.
Energy Minister Matthew Opoku Prempeh has previously framed the PSP as necessary to attract $1.5 billion in private investment for ECG’s aging infrastructure. The company currently struggles with 25% system losses and frequent power outages, despite serving as the nation’s sole electricity distributor.
PUWU leaders acknowledge ECG requires modernization but insist reforms must follow inclusive due process. “If this is truly about improving Ghana’s energy sector, why the secrecy?” Hayes questioned. The union has threatened escalated industrial action unless government establishes proper consultation frameworks involving organized labor and civil society.
The standoff echoes similar privatization controversies across Africa, where utility reforms often spark tensions between economic efficiency goals and public accountability concerns. With Ghana’s energy sector debt exceeding $2 billion, the ECG decision carries significant implications for both fiscal stability and social equity.
As the red flags continue flying at ECG offices nationwide, the government faces mounting pressure to either justify its accelerated timeline or pause the process for broader stakeholder input. The outcome may set important precedents for how Ghana balances urgent economic reforms with democratic governance principles in its critical infrastructure sectors.
