Kwasi Pratt Jnr questions the rationale for ECG privatisation given history of failed state enterprise divestiture

The Managing Editor of the Insight Newspaper Mr Kwesi Pratt Jnr has raised concerns regarding the potential privatisation of the Electricity Company of Ghana (ECG) during his appearance on Good Morning Ghana on January 14, 2025. 

He argued that the government's plans for the ECG should take into account a history of failed privatisation efforts involving state enterprises.

Mr Pratt cited the Aqua Vitens Rand Limited agreement with the Ghana Water Company Limited, which was canceled after public unrest, as a key example of a privatisation initiative that did not succeed.

He noted that many state enterprises have been privatised since 1936 without achieving their intended goals, describing this history as a cautionary tale for the government's approach to vital utilities like the ECG.

Mr Pratt voiced strong support for the Public Utility Workers Union, emphasising that the ECG cannot operate solely on a profit basis. He stated,

“The ECG must extend services to rural areas, which may not be profitable,” highlighting the need for the utility to provide essential services to all citizens.

He also raised concerns about profit repatriation and its potential negative impact on the national currency.

He warned that privatisation could lead to job losses, which would create social costs for the economy and urged the government to reconsider its approach, particularly since some officials had previously opposed the privatisation of the ECG.

In addition to these concerns, Mr Pratt underscored the need for careful evaluation of the government's plans for the privatisation of the ECG, particularly in light of the failures of past state enterprise sell-offs.