Deputy Energy Minister nominee backs privatisation of parts of ECG’s operations

Deputy Minister nominee for Energy and Green Transition, Richard Gyan-Mensah, has supported the calls for the privatisation of portions of the operations of the Electricity Company of Ghana (ECG).

During his vetting session before the Appointments Committee on Tuesday, February 25, Mr Gyan-Mensah highlighted the financial and operational struggles facing ECG, noting that private sector involvement could help resolve these challenges.

“I think my minister’s position on the privatisation of ECG is necessary, given the current issues within the company. ECG urgently needs capital injection to address the inefficiencies in the system. Bringing in the private sector will play a key role in resolving these challenges and making ECG financially buoyant, which is crucial for consistent and stable power supply,” he said

The government has initiated steps to introduce private sector involvement in ECG’s operations, citing inefficiencies and financial losses.

On January 24, 2025, a seven-member committee was inaugurated to study potential private-sector participation models.

However, trade unions insist that this is merely a pretext for privatisation, an approach they believe has consistently failed in Ghana.

The Energy Minister nominee clarified that the privatisation under discussion would not involve the entire ECG but would focus on specific sections, primarily distribution, billing, and collections.

Addressing concerns raised by labour unions, including the Trades Union Congress (TUC), the minister nominee reassured stakeholders that the process would consider local interests.

“Although I haven’t had extensive discussions with my minister on this, I am confident that Ghana’s Local Content Act will be upheld. The privatisation will not be left solely in the hands of foreign players. Local private companies will also have opportunities to participate if necessary,” he added.

He explained that the ultimate goal of the partial privatisation is to strengthen ECG’s operations while safeguarding national interests’

Source: myjoyonline.com