A senior economist at the University of Ghana Business School, Professor Godfred Bokpin, has called for a comprehensive national support for the government’s proposed reforms in the electricity distribution sector. This includes encouraging private sector participation in the downstream operations of the Electricity Company of Ghana (ECG), a move he believes is crucial to addressing persistent inefficiencies and securing Ghana’s energy future.
Speaking in response to recent comments by the Energy Minister on the country’s energy challenges, Prof. Bokpin emphasized the need for bold and forward-looking leadership.
“I believe they will make some progress. So, if you put all these things together — internal issues with ECG such as procurement challenges, management inefficiencies, and political interference.
“I think we are at the point where we should all support government in some kind of private sector participation in the downstream distribution.”
Professor Godfred Bokpin, Senior Economist at the University of Ghana Business School
The economist argued that with the right model, private sector involvement could enhance operational discipline, improve revenue collection, and bring innovation without transferring ownership of national assets.
“We need the capital injection and discipline that private participation brings. It’s not about selling ECG but improving the performance of our distribution systems.”
Professor Godfred Bokpin, Senior Economist at the University of Ghana Business School
Prof. Bokpin emphasized that this partnership approach could be structured under a performance-based contract model, where private companies manage distribution operations under strict performance targets while the state retains ownership.
Highlighting the unsustainable nature of the current electricity distribution system, Prof. Bokpin pointed to staggering losses in the sector. “Collection losses are close to 15%, which is well above the global average. It’s not sustainable,” he warned.
He also condemned the widespread practice of government ministries, departments, and agencies failing to pay their electricity bills, noting that such behavior severely undermines ECG’s financial viability.
He said, “You cannot pass on all those losses to the ultimate consumer,” referring to the tariff hikes often necessitated by uncollected revenues.
Additionally, the economist raised concerns about tariff-setting mechanisms, indicating that inconsistencies in the pricing formula contribute to financial imbalances in the sector.
Overcoming Institutional Barriers
Despite the logic of such reforms, Prof. Bokpin acknowledged the political and institutional hurdles that lie ahead. He pointed to potential resistance from ECG staff and unionized workers, along with entrenched interests within the political landscape that may oppose change due to loss of control or perceived threats to job security.
“The complexity of our political economy means that even well-intentioned reforms can be misunderstood or misrepresented.
“But we must remember, electricity shortages and blackouts affect all Ghanaians, irrespective of party affiliation.”
Professor Godfred Bokpin, Senior Economist at the University of Ghana Business School
He urged Ghanaians to look beyond politics and support pragmatic efforts to fix the power sector. “We are at the point where we must all rally behind government in pursuing strategic private sector participation,” he reiterated.
The economist’s comments align with broader structural adjustment measures being undertaken under the supervision of the International Monetary Fund (IMF), which has emphasized energy sector reform as a precondition for long-term fiscal sustainability.
Ghana, currently under an IMF program aimed at stabilizing its economy, has been urged to address inefficiencies in the power sector, particularly those related to revenue collection and distribution inefficiencies.
The IMF has repeatedly highlighted that the financial health of utility companies such as ECG and the Ghana Grid Company (GRIDCo) is essential for reducing public debt and ensuring consistent service delivery.
ECG’s inability to recover costs has been a major contributor to the state’s ballooning energy sector debt, which has historically necessitated government bailouts and increased borrowing.
As the nation grapples with recurring power outages and an increasingly unsustainable energy model, Prof. Bokpin’s intervention has added a respected academic voice to the call for reform.
“The issue is not just fuel or generation capacity. It’s the inefficiencies in distribution and the financial black holes.
“We need to fix this—and inviting the private sector in is a good place to start.”
Professor Godfred Bokpin, Senior Economist at the University of Ghana Business School
As the government continues deliberations on how best to stabilize the power sector, public sentiment and expert consensus appear to be shifting in favor of reform rooted in transparency, collaboration, and long-term national interest.
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