Economist and University of Ghana lecturer, Prof Godfred Bokpin, has stressed the urgent need for structural reforms in Ghana’s energy sector, warning that without immediate action, the country’s economic stability remains at risk.
Speaking on May 17, Prof Bokpin highlighted critical inefficiencies plaguing the sector, including major losses in revenue collection and a widespread failure of government institutions to pay for power usage.
“Collection losses are hovering around 15%, well above the global average. That’s simply not sustainable. You cannot pass all those losses on to consumers,” he stated.
He also pointed to persistent tariff gaps and pricing challenges, noting that the current system is structurally flawed.
Of particular concern, he said, is the culture of non-payment by government ministries, departments, and agencies (MDAs), which adds further pressure to an already burdened system.
Prof Bokpin strongly advocated for private sector participation in electricity distribution.
He clarified that this does not mean selling off the Electricity Company of Ghana (ECG), but rather inviting private expertise and investment to boost efficiency while the state retains ownership.
“We should support private sector participation in downstream distribution. Government can remain the sole shareholder, but bring in private capital and management to turn things around,” he urged.
He acknowledged that implementing such reforms would face political and institutional resistance, especially from staff unions.
However, he called on Ghanaians to unite behind the changes, emphasising that energy challenges affect everyone, regardless of political affiliation.
“These reforms are not optional, they’re necessary, pointing out that they align with commitments under Ghana’s ongoing IMF-supported economic program.
“We all feel the impact when the lights go off. It’s time to fix the system together,” he said.