Ghana Denies Plans to Sell Electricity Company

The Ghanaian government has denied claims that it plans to sell the Electricity Company of Ghana (ECG), saying the ongoing process to bring in a transaction advisor is part of a limited reform effort, not a divestiture.

The response follows protests by ECG workers, led by the Public Utilities Workers Union (PUWU). The union has hoisted red flags at ECG offices across the country to protest government plans to introduce Private Sector Participation (PSP) in the company.

Reacting to this, the Ministry, in a statement on Tuesday, said the Cabinet approved the PSP framework in April 2025 under President John Dramani Mahama as part of a “broader reform agenda aimed at improving billing and revenue collection, enhancing service delivery, and reducing aggregate technical and commercial losses within the Company.”

The Ministry acknowledged that ECG’s performance has improved since January 2025, but disclosed that “critical challenges still persist” and could “threaten the financial sustainability of ECG and the stability of the power sector” if left unaddressed.

Ghana Denies Plans to Sell Electricity Company. Credit: Public Sector Magazine

It stressed that the PSP framework does not involve a sale or divestiture of ECG, but rather the use of private sector expertise through concession arrangements in specific operational areas of the company.

“The Government of Ghana does not intend to, and will not, sell ECG,” the Ministry said.

“The approved Private Sector Participation framework is not a sale or divestiture. Rather, it involves the strategic deployment of private sector expertise through multiple concession arrangements to support and improve specific operational areas of ECG.”

The Ministry said it has maintained open and constructive engagement with PUWU and will continue to engage the union to address concerns and resolve outstanding issues.

It added that selecting a transaction advisor is a technical and procedural step to properly structure the PSP framework and does not, in any way, imply an outright sale of ECG, and called for “calm and restraint as engagements continue in good faith.”