President John Dramani Mahama has firmly dismissed plans to privatize the Electricity Company of Ghana (ECG), despite acknowledging the state-owned utility’s GH¢68 billion debt and operational inefficiencies.
Speaking at May Day celebrations in Accra’s Black Star Square, Mahama emphasized a commitment to public-private collaborations as a solution to revitalize the power distributor.
“Let me assure you that it is not my intention to privatize ECG as an institution,” Mahama told workers, stressing that the focus lies on partnerships to enhance efficiency in electricity distribution. He warned that without urgent reforms, Ghana’s energy sector risks collapse, adding, “We can only reduce power tariffs if we improve distribution efficiency.”
ECG’s mounting debt, now equivalent to nearly 10% of Ghana’s GDP, has raised alarms over financial sustainability. The president cited Enclave Power, a private firm managing billing in Ghana’s free zones, as a model for collaboration. Enclave achieves a 99% revenue collection rate and remits payments to ECG punctually, demonstrating the potential of such alliances without transferring public ownership.
Mahama’s proposal aligns with reforms during his prior administration, which saw limited private sector involvement in specific energy operations. However, critics argue that deeper structural issues, including legacy debts and tariff imbalances, require comprehensive policy action beyond partnership models.
Ghana’s energy sector struggles mirror challenges faced by utilities across Africa, where aging infrastructure and financial mismanagement often clash with political resistance to privatization. While Mahama’s stance safeguards public control, analysts note that ECG’s turnaround will depend on transparent governance, upgraded technology, and stricter revenue collection mechanisms.
The government’s approach reflects a broader trend of hybrid solutions in emerging markets, balancing state oversight with private sector efficiency. As Ghana navigates these reforms, the success of its partnerships will hinge on accountability and sustained investment key factors in ensuring reliable power for households and industries alike.
