An energy expert has proposed a structured approach to private sector participation, recommending a multi-company model instead of a single-entity monopoly to improve efficiency and revenue collection at the Electricity Company of Ghana (ECG),
Michael Creg Afful, Executive Director and Editor of Energynewsafrica.com, outlined his recommendations in a proposal dated March 4, 2025.
He emphasized that the government should avoid allowing one entity to manage ECG’s revenue collection under the proposed privatization initiative.
To ensure competition and efficiency, he suggested that five companies be selected through the planned tendering process based on their technical expertise and financial strength. Four of these companies would form two joint ventures, while the remaining one would operate independently.
Further, Mr. Afful proposed that ECG be divided into three operational zones: Group 1: Central, Ashanti, and Western regions, Group 2: Eastern and Volta regions and Greater Accra should stand alone due to its large population.
Under this model, the joint venture companies would be allocated to the first two groups, while a single entity would be responsible for managing electricity services in Accra.
To maintain accountability, Mr. Afful urged the government to implement Key Performance Indicators (KPIs) for the selected private companies.
He recommended performance reviews at six months and one year, with the condition that underperforming companies should face contract termination if they fail to meet set targets.
These proposals come at a time when discussions on private sector participation in ECG are intensifying, with stakeholders seeking sustainable solutions to improve efficiency and reduce financial losses in Ghana’s electricity sector.
