Ghana: Workers Lead Fight Against Energy Privatization

PSI Members from the Public Utility Workers Union (PUWU) of Ghana are leading the charge against plans to introduce private sector participation in the Electricity Company of Ghana (ECG).

PUWU's analysis reveals energy sector problems stem from political interference and poor governance - issues which will only be exacerbated by privatization. PUWU General Secretary Timothy Nyame said: "Privatization is not the solution - it will only lead to job losses, higher tariffs, and compromised national energy security."

In 2019 the government attempted a failed private concession for Power Distribution Services which led to mass job losses. A comprehensive study from PSI Research Unit found that “In Africa there is no convincing evidence of sustainable private sector investment in water, electricity or transport.”

The situation in Ghana mirrors a global pattern where private sector participation in public utilities has led to increased costs for citizens while failing to deliver promised improvements. A mutli-country study led by the OECD found that privatized electricity systems had 23% higher costs.

The union's alternative proposal emphasizes the need for strategic reforms that maintain public control while addressing operational challenges. This includes strengthening revenue collection mechanisms and implementing better governance structures and public investment in modernizing infrastructure - solutions that prioritize public services over private profits.