Energy Analyst and New Patriotic Party (NPP) member, Kwadwo Nsafoah Poku, has backed the Asantehene’s recommendation to privatise key state-owned enterprises in Ghana’s energy sector.
Kwadwo Poku argues that the sector urgently needs financial resources to address the current crisis, and the private sector is the only viable source.
This aligns with the recent suggestion by Asantehene, Otumfuo Osei Tutu II, who urged the government to divest state-owned enterprises like the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) to attract private investment.
Kwadwo Poku clarified that the Asantehene is advocating for greater private sector participation, not complete privatization. “What the Otumfuo is trying to point out is that we need a private sector participation in the energy sector and it is not lost on anybody that we need that investment,” he stated.
Poku elaborated on the energy sector’s evolution, highlighting a significant shift from solely government-controlled entities to a model with substantial private-sector involvement. He pointed out that 73% of Independent Power Producers (IPPs) are now privately owned, and even the transmission lines have benefited from private sector contributions.
“The energy sector is such that before it used to be only government-run. Because from Akosombo, we have the VRA, GRIDCo and ECG and then to distribution. Now you have the private sector playing 73% of the IPP which is the Independent Power Producers, who are now the private sector.
“Then you had Ghana Gas which is the transmitter but now you also have part of the transmitting pipe being played by Genser which has also built these pipelines which is also private sector-led. You need capital because if the government side does it, it means that the government is the majority shareholder and the investment will have to come from the government’s coffers which we don’t have the money. So, yes it is a call in the right direction, we really need it.
