The Authorities of Ghana and the Worldwide Financial Fund (IMF) are pushing for fast-track non-public sector participation within the Electrical energy Firm of Ghana (ECG) to curb excessive industrial and technical losses. Nevertheless, the federal government has dominated out a full sale or full privatization, opting as an alternative for a public-private partnership (PPA) or concession mannequin.
Non-public sector participation within the ECG is anticipated to start by early 2027, regardless of opposition from organized labor, in keeping with Dr Teo Achiampong, a senior adviser on the Ministry of Finance.
As a part of a panel dialogue on Pleasure FM’s Newsfiles program on Saturday, Could 16, 2026, a technical adviser to the Ministry of Finance mentioned the federal government is making ready to proceed with the restructuring of the ECG by the top of this 12 months.
“Non-public sector participation will probably be realized underneath the ECG,” Dr. Acheampong mentioned. “From the top of the 12 months to the start of subsequent 12 months.”
In response to Dr Acheampong’s feedback, Dr Kwabena Nyarko-Otoo, Everlasting Secretary of the Trades Union Congress (TUC), who participated within the dialogue by cellphone, mentioned: “The union is effectively ready and can make each effort to make sure that ECG isn’t privatized.”
He added that the TUC and its associates have been “prepared to make use of all reputable means” to cease the transfer.
The federal government insists that this course of doesn’t quantity to privatization. In an announcement launched on December 30, 2025, the Ministry of Power and Inexperienced Transition mentioned the state is not going to promote ECG.
“The accepted non-public sector participation framework isn’t a divestment or divestment. Somewhat, it entails the strategic deployment of personal sector experience via a number of concession agreements to assist and enhance particular operational areas of the ECG.”
The IMF, in an announcement dated Could 15, 2026, addressing the transition because it introduced that Ghana had entered into an Prolonged Credit score Facility Settlement and agreed to a brand new 36-month Coverage Coordination Instrument (PCI), mentioned Ghana’s financial restoration nonetheless requires accelerated non-public sector participation in ECG electrical energy distribution operations. The fund additionally warned of economic dangers related to state-owned enterprises and known as for reforms within the electrical energy distribution sector.
Godfred Bokpin, Professor of Finance on the College of Ghana, contributing to the Pleasure FM Newsfile dialogue, mentioned state-owned enterprises, particularly ECG, proceed to place stress on the nationwide economic system.
He mentioned the mixed burden of state-owned enterprises is equal to about 2.5% of Ghana’s annual gross home product, or greater than US$2 billion at present change charges.
“Accounting strategies mainly bear in mind the federal government’s central debt, however in actuality debt is being accrued via these state-owned enterprises, and finally it will likely be delivered to the finance minister’s agenda to be resolved,” Professor Bokpin mentioned.
Former ECG Managing Director, Mr. Samuel Dubik Mahama additionally spoke about operational difficulties inside the firm.
He defined that underneath the money waterfall system used within the power sector, ECG receives solely a portion of the funds collected from shoppers.
“In the event you pay ECG 300 million yen for month-to-month surgical procedures, your wage will probably be diminished by 11 billion yen,” Mahama mentioned.
He mentioned that after salaries, hospital payments, gasoline and working prices are deducted, there’s little cash left for upkeep and infrastructure investments.
Mr Mahama additionally questioned why ECG has monetary obligations to all unbiased energy producers, regardless that ECG primarily distributes energy to the South and Central areas, whereas the Northern Distribution Firm serves the northern sector.
He argued that with Ghana’s put in energy technology capability estimated at 5,641 MW in 2024 and ECG’s peak demand at round 2,700 MW, ECG is being burdened with prices that exceed its incomes capability.
“You are asking a enterprise that spent $2,700 to pay a invoice that is greater than $4,000,” he mentioned.
Dr. Obi rejected the suggestion that the ECG’s present efficiency warranted non-public sector participation.
He mentioned the corporate had improved its month-to-month income assortment from about GH¢900 million to GH¢2.1 billion in opposition to a income requirement of about GH¢2.5 billion.
“There’s nothing mistaken with ECG persevering with what it has been doing, the progress it is made,” he mentioned.
Dr. Oobi additionally talked about the facility distribution rights with Uganda’s Umeme Restricted, which operated the system from 2005 till March 2025.
He argued that electrical energy costs had turn into too excessive for many individuals in the course of the concession interval.
