President John Dramani Mahama has signaled a potential shift in Ghana's energy sector, suggesting the privatization of the Electricity Company of Ghana (ECG) as a means to tackle persistent inefficiencies. This announcement, made during a January 8th, 2025 meeting with a World Bank delegation in Accra, highlights the government's commitment to modernizing and improving the performance of the nation's power distribution system.
The President's proposal stems from concerns over longstanding challenges facing ECG, including operational inefficiencies, financial mismanagement, and inadequate service delivery. He believes that private sector involvement could inject much-needed expertise and efficiency into the company's operations, ultimately resolving these issues.
Mahama's consideration of privatization is framed within a broader strategy to enhance the entire energy sector. Drawing on his experience as Vice President during Ghana's participation in the Millennium Challenge Corporation (MCC) Compact, he emphasized the crucial role of efficient energy distribution in achieving national development goals. He stressed that any privatization efforts would prioritize the creation of a sustainable energy sector capable of meeting the growing demands of Ghana's economy.
The President's statement underscored the gravity of the situation: "If we don’t fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain." He explicitly mentioned seeking World Bank expertise to facilitate a smooth transition to a privatized model.
Crucially, Mahama reassured stakeholders that any decisions regarding ECG's future would be made after thorough consultations, ensuring a balance between public interest and the imperative for improved performance. This commitment to transparency and stakeholder engagement suggests a cautious and considered approach to this potentially transformative policy change. The government's focus appears to be on finding a solution that optimizes efficiency while safeguarding the interests of the Ghanaian people.
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