Ghana’s Energy Minister-designate, John Abdulai Jinapor, has outlined a six-month timeline to develop a comprehensive framework aimed at increasing private sector participation in the operations of the Electricity Company of Ghana (ECG).
This initiative, which is intended to boost the efficiency and sustainability of the power distribution sector, has been touted as a crucial step in addressing some of the sector’s long-standing challenges.
During his vetting session before Parliament’s Appointments Committee on January 13, 2025, Jinapor revealed plans to establish a seven-member committee tasked with drafting the framework. This committee will include technical experts, legal professionals, financial analysts, industry stakeholders, and consumer representatives, ensuring a holistic approach to the issue.
Jinapor emphasized that the government intends to adopt a transparent process and avoid political interference in the development of this framework. He noted that the committee will assess global best practices to determine whether a concession model or full privatization would be the most appropriate for ECG, which has struggled with financial and operational inefficiencies in recent years.
“This is about ensuring that the ECG is more efficient and that the private sector can bring in the needed expertise to turn around its operations,” said Jinapor. He added that the government is committed to making sure that any potential partnership with the private sector would be in the best interest of Ghanaians.
The minister-designate also acknowledged past attempts to involve the private sector in the operations of ECG, noting the challenges and lessons learned from previous concession arrangements. He stressed that the government would use these lessons to guide its new approach, ensuring that it does not repeat past mistakes.
While Jinapor is optimistic about the potential benefits of private sector involvement, the timing of the plan is notable. With Ghana’s energy sector facing a growing debt burden — now estimated at $3 billion — the pressure to implement structural reforms has never been higher. Private sector involvement in the energy distribution sector is seen as a potential solution to improve efficiency, reduce waste, and address the financial woes of ECG. However, the success of this initiative will hinge on careful planning and execution.
Jinapor’s initiative is viewed as a critical step toward stabilizing the energy sector and improving service delivery. The involvement of the private sector is expected to bring fresh expertise and investment to the sector, potentially driving improvements in infrastructure and reducing the financial strain on government resources.
Yet, the proposal comes at a time when public scrutiny of privatization efforts is high. Ghana’s experience with privatizing state-owned enterprises in other sectors has been met with mixed results, and any move to privatize parts of the energy sector will likely face opposition from critics who argue that such efforts could lead to higher costs for consumers or the erosion of public control over essential services.
The coming months will be crucial as the committee works to finalize the framework. The government will need to carefully balance the need for private sector investment with the imperative to protect national interests and ensure that the benefits of any such involvement are felt by all Ghanaians.
