President John Mahama has assured Ghanaians that the Electricity Company of Ghana (ECG) will remain state-owned. It will not be privatised. This assurance addresses ongoing concerns regarding the country’s power sector.
During his address at the May Day celebration at Black Star Square, the President spoke on Thursday, May 1. He directly addressed the rising concerns about the potential privatisation of ECG. He made it clear that his administration has no intention of selling the state-owned power distributor.
“Let me assure you that it is not my intention to privatise ECG as an institution. Our attention is more on public-private collaboration to inject efficiency into our downstream electricity distribution system,” the President stated.
He elaborated on the financial challenges facing ECG. He also discussed the operational challenges, including its heavy debt burden and inefficiencies. These issues are threatening the stability of the entire power sector.
“The ECG has been brought to its knees by a culture of poor governance over the last eight years, with a debt of GH¢68 billion and rising. If we do not do something drastic, our whole power sector will collapse. We can only bring down power tariffs if we improve efficiency in the distribution of power,” he explained.
President Mahama proposed that public-private partnerships could be a practical solution. He pointed to a successful model from his earlier term in office as an example.
“When I was President, in the free zones, a private company, Enclave Power, was given the right of metering and billing in the free zone. ECG provided them with a bulk supply of power.
“They pay ECG, and until today, they still pay ECG monthly on time. Their billing and collection in the free zones enclave is 99% of revenue collected,” he shared.
He said this example illustrates how partnerships with private firms can enhance operational efficiency without the need to transfer ownership.
“I am confident that through public-private partnerships, we can make our electricity distribution system more effective, but I assure you that ECG as an institution will not be privatised,” President Mahama stressed.
