The Africa Sustainable Energy Centre (ASEC) Executive Director, Ing. Justice Ohene-Akoto, has endorsed calls for private sector participation in the commercial operations of the Electricity Company of Ghana (ECG). He described this move as a game changer for the power sector. This backing comes amidst a growing debate over International Monetary Fund (IMF) recommendations for greater private sector involvement in ECG’s operations under Ghana’s current IMF-supported programme.
Ing. Ohene-Akoto stated that ECG continues to face significant commercial losses. These losses affect the financial stability of the entire energy sector. He noted that while technical losses in the power distribution system remain acceptable, commercial losses have sharply risen. Recent estimates from 2025 indicated ECG’s losses could be as high as 40%. Power theft, illegal connections, faulty metering, and unpaid bills drive these large losses.
This push for private sector involvement fits into Ghana's broader economic narrative of improving state-owned enterprise efficiency. Ghana’s government has actively sought to reduce the financial burden of struggling state entities. Reducing losses in key sectors like energy can free up significant government funds. These funds can then be redirected to other vital areas of the economy or used to reduce national debt. Such reforms are often key components of IMF structural adjustment programmes aimed at fiscal consolidation and economic stability.
“Private sector participation is a good thing and a game changer,” Ing. Ohene-Akoto said. “The commercial arm of ECG should have private participation.” He specifically highlighted that commercial losses have exceeded 30%. He advocates for introducing a “business-minded approach” to the system. This approach would involve private companies in revenue collection, improving efficiency and accountability.
Introducing multiple private sector partners for revenue collection would also foster competition. This competition could drive innovation among private operators. The Public Utilities Regulatory Commission (PURC) would maintain its regulatory oversight. Reducing these substantial losses would also ease pressure on government finances. This would allow more resources to be allocated to other critical sectors of the economy. This aligns with the IMF’s stance, which clarifies that it advocates for reforms to improve efficiency, not full privatization.