Mahama Rules Out ECG Privatization, Backs Private Partnerships

KEY POINTS

• Mahama reaffirmed that ECG privatization in Ghana is not an option.
• He supported partnerships to reform ECG without selling it off.
• A successful private model exists without transferring ECG’s ownership.

Amid growing apprehension, President John Mahama reassured Ghanaians on Thursday that his administration will not privatize the Electricity Company of Ghana (ECG).

President rejects ECG privatization in Ghana during May Day speech

Mahama spoke at the May Day celebration in Accra’s Black Star Square, addressing growing concerns over the country’s electricity industry’s future.

He underlined that the government has no plans to sell ECG and that, with better performance, energy distribution must continue to be a public duty.

He declared, “I do not intend to privatize ECG.” “Public-private cooperation to improve downstream electricity distribution efficiency is our top priority.”

Mahama pointed out that the nation’s whole electricity grid is at risk of becoming unstable due to ECG’s high debt load and operational inefficiencies.

According to Myjoyonline, ECG has been damaged by years of poor management and currently has GH¢68 billion in debt, which is still rising at an alarming rate.

“Our entire power sector could collapse if we do not act immediately,” he stated. “The only way we can lower tariffs is by increasing efficiency.”

Public-private model offers solution to ECG’s financial crisis

Citing a prior accomplishment during his presidency that improved revenue collection and power supply, Mahama suggested public-private partnerships as a remedy.

He recalled how ECG provided the bulk electricity and Enclave Power, a private company, handled billing and metering in the free zones.

With a 99 percent collection rate, the private company paid ECG on time each month, guaranteeing steady income for the national grid.

Mahama clarified in his speech that “this arrangement showed that with the right partnership, we can improve efficiency while ECG remains publicly owned.”

As stated by him, the model shows that the long-term solution to Ghana’s electricity distribution problems lies in efficient administration rather than privatization.

In order to improve performance, Mahama advised stakeholders to take into account reform approaches that preserve public ownership while promoting appropriate private sector involvement.

“Electricity as an institution will not be privatized, but I am confident that a balanced partnership will modernize our distribution,” he reiterated.