ACEP’s Ben Boakye Alarms Over Surging ECG Losses Despite $700 Million Government Investment

Ben Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has raised a sharp critique of the government's financial management of the Electricity Company of Ghana (ECG). Despite the state injecting over $700 million into the utility provider, Boakye revealed that technical and commercial losses have actually worsened, rising from 21% to nearly 30%. He lamented that the current trajectory suggests a paradoxical relationship where increased government investment correlates with greater financial inefficiency, placing an immense strain on the country's energy sector and broader economy.

The scale of the fiscal drain is significant, with ECG now incurring annual losses exceeding GH¢20 billion. To put this figure into perspective, Boakye pointed out that the government's annual expenditure on the critical education sector stands at approximately GH¢3 billion. The fact that a single utility company's losses are several times the size of the national education budget highlights a profound misallocation of resources and a failure to secure value for money in public infrastructure investments. He further identified chronic issues in revenue accounting as a major obstacle to achieving financial stability.

Addressing the ongoing debate regarding the utility's future, the ACEP head emphasized that the primary focus should be on management reform rather than purely on ownership. He referenced the failed concession with Power Distribution Services (PDS) as a missed opportunity for better oversight, suggesting that the government must revisit models that attract private sector efficiency and expertise. Boakye argued that without a fundamental change in how the company is managed and held accountable, further capital injections will continue to be ineffective at stemming the tide of mounting debt.

Ultimately, ACEP is calling for an urgent restructuring of the ECG to protect the national budget and ensure the long-term sustainability of Ghana's power supply. Boakye stressed that a more transparent and sustainable approach is required to tackle the company’s inefficiencies. He urged policymakers to prioritize operational excellence and rigorous financial tracking to prevent the ECG from becoming a bottomless pit for taxpayer funds, ensuring that the energy sector can support rather than hinder national development.