Energy analyst Kwadwo Poku has clarified that ongoing discussions surrounding the Electricity Company of Ghana (ECG) reforms do not constitute privatization, but rather a model of private sector involvement aimed at addressing long-standing inefficiencies.
Speaking on May 2, 2025, during an interview on the Asaase Breakfast Show, Poku addressed the controversy stirred by recent political statements and media reports following former President John Mahama’s May Day declaration that ECG “will not be privatized.” The former president had reiterated a commitment to public-private partnerships (PPPs) as a means of improving power distribution without relinquishing public ownership.
Echoing this viewpoint, Poku explained that public misunderstanding stems largely from the misuse of the term “privatization.” He stated, “No technical person has ever suggested ECG will be privatized. What is being proposed is private participation in certain functions — not the sale of ECG’s assets.”
According to him, the proposed structure is a concession model, where private companies would temporarily manage specific areas such as customer relations, billing, smart metering, and minimizing technical and commercial losses. Ownership of ECG’s core infrastructure would remain entirely under government control. “Privatization implies the permanent transfer of ownership. What we are looking at is a time-bound partnership that brings in expertise to solve recurring operational issues,” Poku emphasized.
This distinction is crucial as ECG continues to suffer heavy losses — around 45% in commercial and technical inefficiencies — amounting to nearly GH₵800 million per month. The Ashanti Region, for instance, highlights the challenge, with an estimated 60% of customers still lacking smart meters, creating complications in billing and revenue collection.
Poku pointed out that introducing private expertise in these operational areas can help modernize ECG’s systems without undermining public control or workers’ interests. He stressed the need to improve metering infrastructure and revenue management to make ECG more financially viable.
This discussion taps into broader concerns surrounding Ghana’s public sector reforms, where buzzwords like “privatization” often trigger fears of job losses and foreign control. Across Africa, countries such as Kenya have adopted similar PPP frameworks within the utility sector, showing that well-managed private collaboration can enhance service delivery without compromising sovereignty. However, success depends on transparent contracts, accountability mechanisms, and strong oversight.
Poku’s statements call attention to the importance of accurate communication and stakeholder education in public discourse. As Ghana continues to seek solutions for its energy sector challenges, distinguishing between full privatization and strategic partnerships will be essential in building public trust and achieving sustainable progress.
