Dr. Steve Manteaw, Technical Advisor for the UK Ghana Gold Program, has raised concerns over the potential privatization of the Electricity Company of Ghana (ECG), urging instead that the focus be on insulating the company from political interference.
His stance comes in light of recent remarks by Energy Minister John Abdulai Jinapor, who indicated plans to privatize ECG to enhance its efficiency.
Dr. Manteaw’s argument centers on the success of insulating other state-owned entities, such as the Ghana Commercial Bank (GCB) and Goil, from political influence. He believes that applying the same strategy to ECG, rather than resorting to privatization, would improve the company’s performance and viability without the need for selling off public assets.
In a social media post, Dr. Manteaw challenged proponents of ECG privatization to provide examples of successful privatization efforts in Ghana’s public sector, specifically questioning the effectiveness of previous attempts made through the Divestiture Implementation Committee. His post emphasized that, with proper political insulation, ECG could be turned around without the drastic step of privatization.
Meanwhile, Minister Jinapor, during his vetting, revealed plans to introduce private sector participation (PSP) in ECG. He highlighted the formation of a specialized seven-member committee to oversee the process, which aims to improve operational efficiency and the nationwide power distribution system.
However, these proposed changes have faced opposition. On January 13, the Public Utilities Workers Union (PUWU) expressed skepticism over the rapid push toward privatization. In a statement, the union critiqued the proposals put forward by various interest groups, questioning the lack of research and engagement with relevant stakeholders. PUWU acknowledged the interest of local and international entities in investing in ECG but noted that many of these groups had previously faced opposition, indicating a repeating pattern of interest that lacks substantial backing.
This growing debate over the future of ECG highlights the tension between privatization and political control in Ghana’s power sector. With varied opinions from industry experts, unions, and government officials, it is clear that the country faces a crucial decision on how best to secure its energy future.