Handing over the management of the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and the Ghana Grid Company Limited (GRIDCo) to private individuals, particularly foreign investors, could potentially do more harm than good to the nation, according to Energy Expert Kwame Jantuah.
Jantuah expressed his reservations regarding the Asantehene’s suggestion to diversify these institutions, citing potential capital flight as a major concern. He argued that allowing expat investors to take control could result in the repatriation of profits back to their home countries, rather than reinvesting in the Ghanaian economy.
The Asantehene Otumfuo Osei Tutu II recently called for the privatization of GRIDCo, ECG, and VRA, believing that it would enhance their operational efficiency. Speaking at the launch of a 430-kilometre natural gas pipeline in Kumasi, he emphasized the need to involve the private sector in the operations of these entities for improved performance.
Jantuah, however, questioned the capacity of the private sector to effectively manage these technical institutions, raising concerns about potential capital flight and the repatriation of profits. He highlighted the challenges faced by the Power Distribution Services (PDS) when it took over the management of the electricity distribution sector.
Furthermore, Jantuah emphasized the importance of streamlining laws and ensuring that technical experts are retained to run these critical institutions. He cautioned against excessive political interference in the appointment of officials, stressing the need for expertise and continuity in leadership.
