Tensions between government and organised labour over plans to introduce private sector participation in the Electricity Company of Ghana (ECG) have reached a critical point, with a senior Finance Ministry official confirming the reforms will proceed and unions warning they will use every legitimate means to stop them.
Dr Theo Acheampong, Technical Adviser at the Ministry of Finance, said preparatory restructuring will be completed before the end of 2026, with private sector participation formally beginning by early 2027. “The private sector participation under ECG will happen,” he said at a recent policy discussion, underscoring the government’s resolve to push ahead despite sustained resistance from labour.
The Trades Union Congress (TUC) and its affiliate the Public Utility Workers Union (PUWU) have drawn a firm line. TUC Deputy Secretary-General Dr Kwabena Nyarko Otoo said labour is fully mobilised against the plan, insisting ECG must remain wholly state-owned. He said unions would deploy every available legitimate tool to block the initiative, whether the participation is partial or full.
The timing of the standoff is significant. On May 15, 2026, the International Monetary Fund (IMF) announced that Ghana had concluded its Extended Credit Facility arrangement and agreed to a new 36-month Policy Coordination Instrument, reiterating that accelerating private sector participation in ECG’s distribution operations remained necessary for Ghana’s economic recovery programme. The IMF has also warned that inefficiencies within state-owned enterprises, particularly in the energy sector, pose serious fiscal risks to the country.
Government has repeatedly argued the proposed model does not constitute outright privatisation. The Ministry of Energy and Green Transition has maintained that the state will retain ownership of ECG assets while private entities manage specific operational areas under concession arrangements. For labour unions, the distinction offers no comfort. They fear even limited private involvement will trigger job losses, higher electricity tariffs and reduced public control over a critical national asset.
Government spent US$1.57 billion in 2025 alone to clear legacy energy sector debts, with nearly US$8 billion injected into the sector over nine years to stabilise operations. Economist Prof Godfred Bokpin of the University of Ghana has estimated that state-owned enterprises collectively cost Ghana approximately 2.5 percent of Gross Domestic Product (GDP) annually, equivalent to over $2 billion, warning these liabilities eventually fall on the state to absorb.
Former ECG Managing Director Samuel Dubik Mahama pointed to structural weaknesses within the company, including limited revenue retention under the energy sector’s cash waterfall system and the burden of paying for power purchased from Independent Power Producers (IPPs) nationwide despite ECG serving only parts of the country.
Labour counters with its own figures. ECG recorded its highest ever monthly revenue of GH¢2.1 billion in recent months, up from approximately GH¢900 million previously, a turnaround that unions say demonstrates internal reform is already working without private sector involvement. Dr Otoo also cited Uganda’s electricity concession experience as a cautionary example, arguing it resulted in higher tariffs and public dissatisfaction after private operators took over distribution.
Unions point to Ghana’s history of privatisation, noting that over 300 state enterprises have been privatised in four decades, with more than 50 liquidated, and citing the collapse of Ghana Airways and Ghana Telecom as evidence of the risks involved.
With both sides holding firm positions and IMF conditions adding external pressure, analysts warn the dispute could escalate into industrial action. The outcome will carry consequences not only for Ghana’s energy sector but for investor confidence and the credibility of the country’s broader economic reform agenda.
