National Economic Dialogue: Experts Advocate Partial Privatisation of ECG to Alleviate Energy Sector Debt
The government has been urged to consider the partial privatisation of the Electricity Company of Ghana (ECG) as a strategic measure to address the mounting debt burden in the energy sector, which continues to weigh heavily on the public purse.
This recommendation was put forward during the Structural/Policy Reforms session at the National Economic Dialogue, where experts highlighted the potential benefits of private sector participation in ECG’s operations.
Presenting the group’s findings, former Ghana National Petroleum Corporation (GNPC) CEO, Dr. K.K. Sarpong, underscored the importance of commercialising ECG to improve efficiency, enhance revenue collection, and reduce financial losses.
“We believe that if you introduce private sector participation, then the idea of driving it towards commercialisation is likely to be achieved, and that way we prepare eventually for its stock market listing to raise money locally and internationally. I believe in democratic capitalism—many people getting the chance to buy assets,” Dr. Sarpong stated.
Energy Minister Commissions Technical Committee to Draft ECG Privatization Plan
Meanwhile, the Minister of Energy and Green Transition, John Jinapor, has inaugurated a seven-member technical committee tasked with developing a comprehensive framework for the privatization of the Electricity Company of Ghana (ECG).
The committee, comprised of energy experts and key stakeholders, has one month to deliver a plan aimed at improving the utility provider’s efficiency and service delivery.
The committee’s mandate includes formulating strategies to transition ECG to private sector management while prioritizing improved service delivery and operational efficiency.
According to the Minister, the process will be competitive and designed to attract local and international investment to stabilize and transform Ghana’s struggling energy sector.
The committee was expected to submit its final report and recommendations by the end of February 2025.
