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Ghana's Bold Step: Private Sector Participation in ECG Revenue Collection



Ghana is making a significant move to reform its energy sector by introducing private sector participation in the Electricity Company of Ghana’s (ECG) revenue collection. This policy aims to reduce inefficiencies and financial losses in the system, while improving service delivery to consumers.

 Background: Why This Move?

The ECG has long struggled with inefficiencies—most notably, recovering only about 62% of the electricity it purchases from power producers. This has contributed to rising debts in the energy sector, currently estimated at $2.5 billion (read about Ghana's energy sector debt), which the government aims to reduce by the end of 2025.

What the Policy Entails

This initiative is not a full privatization of ECG but a targeted partnership with private companies to manage billing and revenue collection. A recent pilot with Enclave Power Limited showed a 99% collection rate, which has inspired a wider rollout of this model.

The government has stated that:

  • Local companies will be prioritized.

  • A technical committee will oversee implementation.

  • The goal is to improve transparency and accountability in the billing process.

Positives of the Policy

  • Higher Revenue Recovery: Private companies can deploy better systems and reduce leakages in revenue collection.

  • Operational Efficiency: The private sector often brings in advanced technologies and streamlined processes.

  • Reduced Sector Debt: More consistent payments to power producers will improve the entire value chain.

Concerns and Criticisms

  • Trust Issues: Memories of the failed PDS concession in 2019 still linger, raising concerns about oversight and due diligence.

  • Job Security: Worker unions are worried about potential layoffs or unfavorable employment terms.

  • Public Interest: Critics argue essential services like electricity should not be profit-driven.

What’s Next?

The government is developing a clear framework to guide private sector engagement with ECG. This includes:

  • Transparent selection of partners.

  • Strong regulatory oversight.

  • Ensuring consumer protection and service quality.

Final Thoughts

This is a bold but necessary step. If well-executed, the policy could turn ECG into a more financially stable and efficient institution. However, transparency, regulation, and public communication will be crucial to its success.


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