Energy expert Kwadwo Poku has dismissed media and political narratives framing reforms at the Electricity Company of Ghana (ECG) as privatization, clarifying that proposals center on private sector participation to address operational inefficiencies.
His remarks, made during an interview on the Asaase Breakfast Show on May 2, 2025, followed former President John Mahama’s recent assurance that ECG “will not be privatized” amid public concerns over the company’s future.
Mahama, speaking at May Day celebrations, emphasized a focus on public-private partnerships (PPPs) to enhance power distribution, stating, “Read my lips with emphasis the Electricity Company as an institution will not be privatized.” Poku echoed this stance while criticizing misrepresentation of the term “privatization,” which he attributed to media oversimplification. “No technical person has said ECG is going to be privatized. It is journalists and commentators misusing the word,” he asserted.
Poku explained that the proposed model involves a concession arrangement, where private entities would manage specific retail operations such as customer service, revenue collection, metering, and reducing distribution losses for a fixed period, while the government retains ownership of ECG’s assets. “Privatization means transferring ownership permanently. This is about temporary, targeted partnerships to solve systemic issues,” he said. Technical and engineering functions, he noted, would remain under ECG’s control.
The clarification comes as ECG grapples with a 45% commercial and technical loss in electricity distribution, costing the company roughly GH₵800 million monthly. Poku highlighted the Ashanti Region as a critical example, where 60% of customers lack smart meters, complicating billing and revenue recovery. “Without fixing metering and revenue mobilization, ECG’s financial challenges will persist,” he said, stressing that private sector expertise could modernize these areas without ceding state control.
The debate reflects broader tensions in Ghana’s public sector reforms, where terms like “privatization” often spark public anxiety over job losses or foreign dominance. Similar PPP models have been implemented in utilities across Africa, such as Kenya’s partnership with private firms to reduce electricity losses. However, success hinges on transparency and clear contractual terms to prevent exploitation.
Poku’s intervention underscores the need to distinguish between asset sales and operational partnerships, particularly in sectors vital to national development. As Ghana seeks to stabilize its energy sector, balancing efficiency gains with public accountability remains paramount. For now, the discourse around ECG serves as a reminder that precise language and stakeholder education are critical to navigating complex reforms in an era of rapid misinformation.
