President John Dramani Mahama
President John Dramani Mahama has categorically ruled out the privatisation of the Electricity Company of Ghana (ECG), assuring workers and the general public that his focus is instead on enhancing efficiency in power distribution through public-private collaboration.
His remark is in response to increasing anxiety over the future of the country’s main power distributor, with many worried that ongoing financial woes and mismanagement could lead to its privatization.
Speaking at this year’s May Day celebration at the Independent Square in Accra yesterday, President Mahama explained that while urgent reforms are needed to prevent a total collapse of the power system, privatisation of ECG is not on the table.
“Let me assure you that it is not my intention to privatise ECG as an institution,” the President stated, noting, “Our attention is more on public-private collaboration to inject efficiency into our downstream electricity distribution system.”
The President highlighted what he described as a troubling deterioration of ECG’s financial health, blaming the past eight years of governance for mismanagement that has left the company heavily indebted.
“The ECG has been brought to its knees by a culture of poor governance over the last eight years, resulting in a debt of GH¢68 billion and rising,” he said and added, “If we do not take proactive measures, our power system will collapse.”
President Mahama emphasised that efficiency in power distribution is key to bringing down the cost of electricity for consumers, noting that unless drastic action is taken, the entire power sector could face serious consequences.
“We can only bring down tariffs if we improve the efficiency of the distribution of power. If we do not do something drastic, our whole power sector will collapse,” he said.
To support his call for public-private partnerships, the President cited his own track record during his previous administration. He referred specifically to the case of Enclave Power, a private company that was granted the right to manage metering and billing within the free zones.
“When I was President, in the free zones, a private company, Enclave Power, was given the right of metering and billing,” he explained, continuing, “ECG provided them with a bulk supply of power. They pay ECG, and until today, they still pay ECG monthly on time. Their billing and collection in the free zones enclave is 99% of revenue collected.”
President Mahama argued that examples like Enclave Power demonstrate how private sector involvement, when properly managed, can help restore efficiency in Ghana’s power distribution chain without surrendering public control of critical infrastructure.
“I am sure that we can make our electricity distribution more effective through public-private partnerships, but I can assure you that electricity as an institution will not be privatised,” he stressed again.
His remarks come at a time when electricity tariffs and service reliability remain top concerns for both consumers and businesses, with ECG facing widespread criticism over billing inefficiencies, power outages, and a growing debt burden.
The speech signals a major policy direction ahead of the 2024 elections, as Mahama positions himself as a pragmatic reformist, advocating structural change without compromising state ownership of strategic national assets.
By Ernest Kofi Adu