We’ll Consider Privatizing ECG To Improve Power Situation – President Mahama

President John Dramani Mahama has proposed the potential privatization of the Electricity Company of Ghana (ECG) as a key step towards addressing inefficiencies in the country’s power distribution system. Mahama shared this perspective during a meeting with a delegation from the World Bank on Wednesday, January 8, 2025, at his private office in Accra.

The President highlighted that private sector involvement could be instrumental in tackling long-standing challenges within ECG, including operational inefficiencies, financial mismanagement, and subpar service delivery. According to Mahama, these issues continue to hamper the energy sector’s ability to meet the growing demands of Ghana’s economy.

“We need to fix the Electricity Company of Ghana,” President Mahama said. “If we don’t, we will continue to face major issues across the entire power value chain. Privatizing the last point of electricity distribution and bringing in private sector efficiency is something we are keen to pursue. We will also engage with the World Bank to access the necessary expertise to achieve this.”

Mahama noted that any privatization effort would be part of a broader strategy to modernize Ghana’s energy sector. He emphasized that the initiative aims to ensure a sustainable and efficient energy system capable of driving the nation’s development agenda.

Reflecting on Ghana’s engagement with the Millennium Challenge Corporation (MCC) Compact during his tenure as Vice President, Mahama underscored the importance of reliable energy distribution in achieving economic growth and improving quality of life for citizens. He also assured stakeholders that any decisions regarding ECG’s future would involve extensive consultations to balance public interest with the need for improved performance.

The President’s comments come amid ongoing debates about the best approaches to addressing challenges in Ghana’s energy sector. While proponents of privatization argue that it could introduce much-needed efficiency and accountability, critics have raised concerns about potential implications for affordability and access to electricity for low-income households.

The World Bank delegation welcomed the discussions, reiterating its commitment to supporting Ghana’s efforts to strengthen its energy infrastructure. The next steps are expected to involve detailed feasibility studies and stakeholder consultations to assess the viability of the proposed privatization.

As Ghana seeks solutions to its energy challenges, the potential privatization of ECG remains a contentious but promising option to modernize the sector and boost the country’s economic resilience.

Source: GhanaFeed.Com