President John Dramani Mahama has firmly ruled out the privatisation of the Electricity Company of Ghana (ECG), emphasizing instead the need for strategic public-private partnerships (PPPs) to enhance the country’s electricity distribution system.
Speaking at the 2025 May Day celebrations held at Black Star Square in Accra on Thursday, May 1, President Mahama addressed growing public concerns over the future of ECG, Ghana’s primary power distributor. He dismissed fears of a potential sale of the state-owned utility as “unfounded,” assuring workers and citizens that ECG will remain publicly owned under his leadership.
“Let me assure you that it is not my intention to privatise ECG as an institution. Our focus is on public-private collaboration to bring efficiency into our downstream electricity distribution system,” the President said.
His remarks come amid widespread public concern about ECG’s financial struggles, with the company reportedly burdened by significant debts and ongoing operational inefficiencies. President Mahama blamed the crisis on years of mismanagement.
“ECG has been brought to its knees by poor governance over the last eight years. The company’s debt has now reached GH¢68 billion and continues to rise. Without decisive action, our entire power sector risks collapse. Improving distribution efficiency is the only way to reduce power tariffs,” he warned.
While rejecting full privatisation, Mahama pointed to PPPs as a viable solution. He cited a successful case during his previous administration involving Enclave Power Company, which operates in Ghana’s Free Zones enclave.
“When I was President, Enclave Power was allowed to handle metering and billing in the Free Zones enclave. ECG supplied them with bulk power, and they’ve consistently paid ECG on time. Their billing and collection rate is an impressive 99%,” he noted.
President Mahama said this example proves that the private sector can contribute significantly to efficiency and revenue collection without the need to cede ownership of public assets.
“This model shows that we can achieve operational efficiency in the electricity sector through partnerships that preserve public ownership while tapping into private sector expertise,” he concluded.
