President John Dramani Mahama has signaled the possibility of privatizing the Electricity Company of Ghana (ECG) to address persistent inefficiencies in the country’s power distribution system.
Speaking during a meeting with a World Bank delegation on Wednesday, January 8, 2025, at his private office in Accra, Mahama outlined his vision for modernizing Ghana’s energy sector through private sector involvement.
The proposal comes in response to long-standing issues with ECG, including operational inefficiencies, financial mismanagement, and inadequate service delivery, which have hindered the country’s ability to provide reliable and affordable electricity to its citizens. Mahama believes that introducing private sector expertise could help resolve these challenges, ensuring a more sustainable and efficient energy sector capable of meeting the growing demands of Ghana’s economy.
Reflecting on Ghana’s participation in the Millennium Challenge Corporation (MCC) Compact during his tenure as Vice President, Mahama underscored the critical role of efficient energy distribution in achieving national development goals. He pointed out that a well-functioning power sector is essential not only for economic growth but also for improving the quality of life for ordinary Ghanaians. The MCC Compact, which aimed to strengthen energy infrastructure and reduce power outages, highlighted the importance of reforming ECG to achieve these objectives.
“If we don’t fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain,” Mahama stated. He argued that privatizing the electricity distribution arm of ECG could enhance efficiency, reduce losses, and improve overall service delivery. Mahama also emphasized the need for collaboration with international partners like the World Bank to ensure the success of any privatization initiative.
The former president acknowledged that the privatization of ECG is a sensitive issue that would require careful consideration and broad consultation with stakeholders. Mahama assured that decisions regarding the company’s future would be guided by the need to balance public interest with the demand for improved performance. He stressed the importance of transparency and inclusivity in the decision-making process to address concerns from various quarters, including civil society organizations, labor unions, and the general public.
Privatization, as a policy tool, has often sparked debate in Ghana, particularly in the energy sector. Critics have raised concerns about potential increases in electricity tariffs and the accessibility of services under private management. However, Mahama expressed confidence that a well-structured privatization process, supported by robust regulatory frameworks, could deliver significant benefits. He noted that other countries have successfully leveraged private sector participation to transform their energy sectors and believes Ghana can achieve similar outcomes.
Mahama also highlighted the importance of ensuring that the interests of ordinary Ghanaians remain at the forefront of any privatization initiative. He argued that an efficient and reliable power distribution system is essential for supporting small businesses, attracting foreign investments, and fostering economic growth. By addressing the inefficiencies within ECG, the government can create an environment conducive to entrepreneurship and innovation, ultimately benefiting the broader economy.
As discussions around the potential privatization of ECG gain momentum, stakeholders are expected to weigh in on the implications of such a move. For many Ghanaians, access to reliable and affordable electricity remains a top priority. Mahama’s commitment to engaging with stakeholders and seeking international expertise could help build consensus and pave the way for a successful reform process.
In addition to privatization, Mahama also emphasized the need for broader reforms across Ghana’s energy sector. He noted that addressing challenges in power generation, transmission, and distribution requires a holistic approach that involves both public and private sector participation. By adopting innovative solutions and leveraging technology, Ghana can create a resilient and sustainable energy sector capable of meeting the needs of its citizens and industries.
The potential privatization of ECG represents a bold step toward resolving Ghana’s power distribution challenges. While the proposal may face resistance from some quarters, Mahama’s focus on consultation, transparency, and collaboration with international partners offers a path forward. With the right strategies in place, Ghana can overcome the inefficiencies that have plagued its energy sector for years, unlocking new opportunities for growth and development.
As Ghana continues to grapple with power sector challenges, the conversation around ECG’s future will remain a key topic in national discourse. Mahama’s leadership and vision for the energy sector reflect his commitment to addressing these issues and ensuring a brighter future for all Ghanaians. The proposed reforms are not just about improving service delivery; they are about laying the foundation for sustainable economic development and enhancing the quality of life for millions of citizens.
This forward-thinking approach to energy sector reform underscores the critical role of strong leadership and innovative solutions in tackling complex national challenges. By prioritizing efficiency, sustainability, and inclusivity, Mahama’s proposal to privatize ECG has the potential to transform Ghana’s energy landscape, setting the stage for a more prosperous and equitable future.
