Economist Professor Godfred Alufar Bokpin has called on the government to open up the distribution and collection arms of the Electricity Company of Ghana (ECG) to private sector participation, stressing that this does not equate to selling off the state-owned utility.
Speaking on Joy News’ Newsfile program on Saturday, May 17, Prof. Bokpin emphasized, “I believe we should all support government in some kind of private sector participation. That doesn’t mean selling ECG. Government can still be the sole shareholder.” He added, “But we should be able to invite the private sector into the distribution of power and collection. That will bring in capital and private sector efficiency.”
Prof. Bokpin’s call comes amid persistent challenges in Ghana’s energy sector, which he described as one of the biggest threats to the country’s economic stability. He noted the ECG’s alarming distribution losses, estimated at around 40%, which he said is “not sustainable” and far above the global average.
“These losses are too high to be passed on to consumers in full, both economically and socially,” he said, further noting that collection losses hover near 15%, also well beyond the world average.
The economist also pointed to poor power management by state institutions as a compounding factor. “You heard the minister saying that it’s about time ministries, departments, and agencies take responsibility for their energy consumption,” he remarked. He cited anecdotal reports about questionable electricity usage patterns, saying, “Somebody once reminded me, have I noticed where ice blocks come from in this country for pure water sellers? Somebody said, probably from police stations. I’m not saying this is true, but it tells you what’s going on.”
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Despite these significant operational problems, Prof. Bokpin criticized political promises to implement a 24-hour economy as unrealistic under current energy conditions. “You are not even getting power for your eight-hour economy cycle that we are running, and you are talking about a 24-hour economy,” he said.
He urged that reform efforts be aligned with the government’s IMF-supported structural reform program, stressing the importance of transparency. “There are structural reforms under the IMF program. And there are clear indicators government has to meet,” he said, adding that the government should communicate clearly with Ghanaians about the future of ECG.
Prof. Bokpin warned that without addressing fundamental issues, slogans such as the 24-hour economy amount to political theatre.
