Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye, said the Electricity Company of Ghana (ECG) has not turned its fortunes around despite more than $700 million poured into its projects. The company’s losses have climbed from roughly 21 percent to almost 30 percent, he told JoyNews’ Newsfile on Saturday, September 12.
Boakye warned that the rising deficit is a heavy drain on the national budget, with ECG losing over GH¢20 billion a year—an amount ultimately shouldered by the state. He contrasted this with the government’s annual spend of about GH¢3 billion to GH¢3.5 billion on secondary education, arguing that the energy sector’s losses far outweigh those of other critical areas.
The former PDS concession model, which aimed to bring private‑sector investment and management expertise into ECG, was expected to attract about $500 million in private capital over two years. Yet ECG’s own accounts show that more than $700 million has been invested in ongoing projects, yet losses have increased rather than declined.
Boakye said the problem lies not in ownership but in management. He noted that after PDS took over, revenue collection and staff attitudes improved even before significant private investment materialised. “Just management,” he said, “can significantly improve the company’s performance.”
He also raised concerns about how ECG’s revenue has been reported, pointing out that monthly revenue in 2024 was about $1.5 billion, questioning why lower figures had been used in official discussions. Recent measures to channel ECG’s revenue into the established cash‑flow mechanism have improved transparency, but major challenges remain.
According to Boakye, the Ministry of Finance is currently absorbing about $80 million in gas costs every month, in addition to other financial commitments in the power sector. He urged fundamental reforms to prevent the energy sector from continuing to burden the national budget.
Boakye maintains that the PDS model, despite controversy, remains the quickest approach to addressing ECG’s challenges, provided political interference is removed and management practices are strengthened. He concluded that Ghana can no longer afford to commit billions of cedis to ECG without corresponding efficiency gains.
