The Managing Editor of Insight Newspaper, Kwasi Pratt Jnr, has expressed serious reservations about the potential privatisation of the Electricity Company of Ghana (ECG), drawing attention to the history of unsuccessful state enterprise divestitures. Speaking on Good Morning Ghana on January 14, 2025, Pratt argued that the government should consider past failures in its decision-making process regarding the future of ECG.
Pratt referenced the cancelled partnership between Aqua Vitens Rand Limited and the Ghana Water Company Limited as a notable example of a privatisation deal that collapsed due to public dissatisfaction. He further pointed out that since 1936, numerous attempts to privatise state-owned enterprises have not met their intended objectives, presenting a cautionary lesson for the government as it contemplates the privatisation of key utilities like ECG.
The seasoned journalist strongly supported the stance of the Public Utility Workers Union, stressing that ECG cannot be run purely on a profit-driven model. He pointed out that the utility has a responsibility to serve rural areas, even if those regions are not economically viable, emphasizing that essential services should be accessible to all citizens, not just those in profitable areas.
Pratt also raised concerns about the potential economic consequences of profit repatriation, warning that it could place additional strain on the national currency. Furthermore, he cautioned that privatisation could lead to significant job losses, creating broader social and economic challenges. Given these potential risks and the historical failures of privatisation efforts, he urged the government to reconsider its position, especially considering that some officials had previously opposed such moves.
In conclusion, Pratt called for a thorough and thoughtful evaluation of the government’s proposed plans to privatise the ECG, particularly in light of past lessons from unsuccessful state enterprise sell-offs.
Source: MyABCLive.com, originally from Graphiconline.com