Deputy Minister nominee for Energy and Green Transition, Richard Gyan-Mensah, has backed calls for the partial privatisation of the Electricity Company of Ghana (ECG), citing the company’s financial and operational struggles.
During his vetting before the Appointments Committee on Tuesday, February 25, Mr. Gyan-Mensah stressed that private sector involvement could provide the necessary capital injection to address inefficiencies within ECG.
“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 stated.
The government has already initiated steps to introduce private sector participation in ECG’s operations, citing persistent inefficiencies and financial losses. On January 24, 2025, a seven-member committee was inaugurated to study potential participation models.
However, trade unions have expressed concerns, arguing that the move is a pretext for full privatisation, an approach they claim has repeatedly failed in Ghana.
Addressing these concerns, Mr. Gyan-Mensah clarified that the proposed privatisation would not involve ECG in its entirety but would focus on specific sections, primarily distribution, billing, and collections.
“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 assured.
He further explained that the goal of the partial privatisation is to strengthen ECG’s operations while safeguarding national interests.