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Yao Graham Blames Economic Mismanagement for ECG’s Struggles

  • Jan 18, 2025
  • 2 min read

Dr. Yao Graham, the Coordinator of Third World Network-Africa, has attributed the ongoing challenges faced by the Electricity Company of Ghana (ECG) to broader economic mismanagement and unfavorable energy sector policies. His comments were made during an appearance on Channel One TV’s The Big Issue with Selorm Adonoo.


Dr. Yao Graham Links ECG’s Struggles to Broader Economic Mismanagement
Dr. Yao Graham Links ECG’s Struggles to Broader Economic Mismanagement

Dr. Graham highlighted the significant impact of Ghana's declining currency value on ECG’s operations. While the company collects revenue in Ghana cedis, it must settle payments with Independent Power Producers (IPPs) in U.S. dollars, a financial mismatch that has placed immense strain on the utility provider.


"Tariffs have not kept pace with the collapse of the exchange rate," he noted.
"If ECG used to spend GHC7 on a dollar, they are now spending GHC15—it’s double. This creates a financial gap that worsens their operational challenges."

He also criticized the contracts signed with IPPs, arguing that these agreements have not been advantageous for Ghana and have further compounded ECG’s financial difficulties.


Another major issue identified by Dr. Graham is the persistent failure of successive governments and public institutions to settle debts owed to ECG. This has eroded the company’s ability to maintain equipment and expand its services.

"The primary reason for the state of ECG is the accumulation of political decisions and activities over time," he explained. "If public institutions had consistently paid for electricity consumption, ECG’s economic challenges would have been significantly reduced."


Responding to President John Dramani Mahama’s plans to privatize power distribution to enhance efficiency, Dr. Graham emphasized the need to address the systemic issues within ECG instead of resorting to privatization. He argued that structural reforms, rather than privatization, would yield better long-term outcomes.

"In recent times, the terms of agreements with IPPs have also become a factor in ECG’s problems," he added. "We need to address these systemic issues rather than seeing privatization as a quick fix."


Dr. Graham’s remarks underscore the need for a comprehensive approach to resolving ECG’s challenges. He stressed that addressing Ghana’s broader economic mismanagement, re-evaluating unfavorable IPP contracts, and ensuring timely payments from public institutions are critical steps toward restoring ECG’s financial health and operational efficiency.


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