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ECG needs more private money and private participation

Electrical_linesGhana’s Parliament passed an important piece of legislation last week and I bet many of us did not notice. It is on the Millennium Challenge Account grant of $500m for the energy sector and related activities. The major caveat here though is that Ghana Needs to deepen private sector participation in the electricity sector.

We all know the challenges we have had with our solely owned state -enterprises. As we seek public private options, let us be minded that the world is moving away from state-owned enterprises that are often prone to mismanagement and corruption.

A privatised electricity service delivery means constant supply of power, many players and a possible differential pricing mechanism. Already there is private participation in electricity in the form of recharge cards.

And to all of us who think the $500m for the energy sector will be wasted, I can assure you that very little or nothing of this money will go to waste as the condition for disbursing the funds are tighter and controlled by the American government.

This was the same approach used for the construction of the N1 Highway and the agricultural-related projects. This is one aid project that is very wise indeed. Let us educate ourselves about the new MCA compact and stop spreading incorrect information.


Commentary by Franklin Cudjoe, President of IMANI Center for Policy and Education. 


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