Govt to Roll Out ECG Private Sector Participation by 2027
A Technical Adviser at the Ministry of Finance, Dr Theo Acheampong, has disclosed that government’s planned private sector participation in the Electricity Company of Ghana (Electricity Company of Ghana) is expected to commence by early 2027 as part of ongoing energy sector reforms.
He explained that the initiative, which is being implemented jointly by the Government of Ghana and the International Monetary Fund (IMF), is aimed at addressing persistent commercial and technical losses within ECG while improving efficiency in electricity distribution across the country.
“The private sector participation under ECG will happen. End of year going into early next year,” he said, adding that the reforms are progressing despite resistance from organised labour groups.
Dr Acheampong stressed that the arrangement is not a full privatisation or sale of ECG. Instead, it will be implemented through public-private partnerships and concession models designed to improve operational performance, reduce losses and strengthen revenue collection systems.
He noted that the broader objective of the reform is to ensure a more reliable and financially sustainable power distribution system that supports Ghana’s economic growth and industrial development.
Meanwhile, former ECG Managing Director Samuel Dubik Mahama has drawn attention to existing operational challenges within the utility company. He explained that under the current cash waterfall system, ECG is required to operate within a revenue allocation framework where only a portion of collected funds remains with the company.
According to him, significant deductions are made from ECG’s revenue to cover salaries, fuel, healthcare obligations and maintenance expenses, which continues to place pressure on the company’s financial stability.
“The structure leaves ECG with limited flexibility in meeting its operational needs, especially when revenue inflows are not strong enough,” he indicated.
The planned reforms are expected to reshape the power distribution landscape in Ghana, with stakeholders expressing mixed views over the involvement of the private sector in ECG’s operations.
Government officials maintain that the intervention is necessary to improve efficiency, reduce system losses and ensure long-term stability in the country’s power sector.
