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Fixing ECG Requires Bold Private Sector Role- Dankwah 

May 2, 2025
Lilian Ahedorby Lilian Ahedor
in General News
0
Parliament pushed against ECG tariff

Electricity Company of Ghana

In the ongoing debate about how to resolve Ghana’s energy crisis, the inefficiency of the Electricity Company of Ghana (ECG) remains a recurring theme. 

According to the Executive Director of Global InfoAnalytics, Mussa Dankwah, Ghana must look beyond traditional public sector control and boldly welcome the private sector into the power distribution chain if real progress is to be made.

Dankwah argued that although private sector involvement in power generation is already well established, transmission and distribution remain overwhelmingly public, a bottleneck that is holding the entire system back. 

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He emphasized that Ghana’s transmission infrastructure, currently under the full control of the government through GRIDCo, could also benefit from strategic private sector investment. 

According to him, a public listing could serve the dual purpose of raising much-needed funds and introducing accountability to a sector plagued by inefficiencies and underperformance.

However, it’s not just the transmission segment that needs reform. Dankwah indicated that the most problematic area—power distribution—should be the next frontier for private sector engagement. 

Mussa Dankwah on ECG reforms
Mussa Dankwah

“ECG can still distribute power, but the private sector can do some of the last-mile activities such as meter application and installation, fault fixing, meter reading, and revenue collection (but money goes into escrows).” 

Mussa Dankwah

Such an approach, he believes, would help reduce distribution losses, improve efficiency, and make the entire energy delivery system more responsive to public needs.

ECG’s Poor Track Record Makes Case Against Monopolization

According to Mussa Dankwah, ECG’s historical record of mismanagement makes it an unsuitable candidate to continue monopolizing distribution services. 

“The private sector should not be involved in the extension of electricity, management of substations, and transformers. There are several models that can be adopted, and the time is now for ECG to do less of what they have proven over the years that they can’t do well. ” 

Mussa Dankwah
ECG procurement scandal in the spotlight
ECG

His statement is both a diagnosis and a call to action. The inefficiencies at ECG are no longer mere administrative concerns—they are a national crisis affecting households, businesses, and the entire economy. 

Load shedding, revenue leakages, and the inability to manage prepaid meter systems are just a few of the countless complaints that continue to erode public confidence in ECG’s capabilities.

The solution, Dankwah believes, lies in making ECG leaner and more focused while leveraging private sector efficiency and innovation to fill the operational gaps. “Whatever we can do to lower distribution losses and stabilize the energy sector, we must do.” 

ECG Reform Faces Resistance From Insiders

However, he warned that reform will not come easily, indicating that ECG’s inefficiencies have created lucrative loopholes and perverse incentives for some insiders. 

“Those who benefit from ECG failures will fight any attempt to fix ECG, and we must be prepared to fight them back. We are suffering from ECG inefficiencies.”

Mussa Dankwah

In Ghana’s public sector ecosystem, it’s not uncommon for vested interests to resist any change that threatens their personal gain. 

The politics of energy reform, especially involving entrenched state-owned enterprises like ECG, is deeply complex. That’s why Dankwah’s call is not just for structural change but for the political will to see it through.

energy sector crisis on the rise
Electricity Grid

To be clear, privatization alone is not a silver bullet. The caution is not to hand over critical infrastructure like substations or transformer management to private companies. 

Yet, there is an urgent need for hybrid models—where ECG remains a key actor, but is supported, challenged, and in some cases outperformed by capable private actors with clear deliverables.

At a time when Ghana’s economy is struggling and energy security remains precarious, this is not a moment for political comfort zones. 

It is a moment for evidence-based policies, institutional courage, and innovative partnerships.

Reforming ECG will not only stabilize power delivery but could serve as a blueprint for modernizing other state institutions that are failing the very people they are meant to serve. The cost of inaction is far greater than the discomfort of change.

For Ghana to build a reliable and resilient energy future, it must acknowledge the limits of its public power utilities and embrace the strengths of private sector participation—wisely, transparently, and boldly.

READ ALSO: Ecobank Posts Strong Q1 2025 Results, Backed By Currency Tailwinds

Tags: ECGEnergy ReformGRIDCoPower distributionprivate sector
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