President Mahama rules out ECG privatisation; backs PPP for power sector reform

President John Dramani Mahama has ruled out the privatisation of the Electricity Company of Ghana (ECG), promising instead to pursue strategic public-private partnerships aimed at enhancing efficiency in electricity distribution.

Speaking during the 2025 May Day celebrations held at Black Star Square in Accra on Thursday, May 1, President Mahama sought to allay mounting public concerns over the potential sale of the country’s main power distributor. He described such fears as unfounded and assured workers and Ghanaians that ECG would remain a public institution under his administration.

“Let me assure you that it is not my intention to privatise ECG as an institution. Our attention is more on a public-private collaboration to inject efficiency into our downstream electricity distribution system,” he stated.

The President’s comments follow public outcry over ECG’s mounting debts and operational challenges, with many warning of a looming collapse of the energy sector. He attributed the company’s precarious position to what he described as poor governance and mismanagement over the last eight years.

“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.

While rejecting privatisation, President Mahama highlighted the potential of public-private partnerships as a more viable path to reform. He cited a successful example from his previous administration involving Enclave Power Company in the Free Zones enclave, which he said demonstrated how efficiency could be achieved without relinquishing public ownership.

“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 recalled.

According to President Mahama, this model proves that operational efficiency in the electricity sector can be achieved through partnerships that maintain state ownership while leveraging private sector expertise.

“I am sure that we can make our electricity distribution more effective through public-private partnerships, but I can assure you that electricity as an institution will not be privatised,” he emphasised.

Source: GraphicOnline