Gov’t pushes for private sector role in power distribution to boost revenue efficiency

Ghana faces ongoing challenges in revenue collection and losses in the energy sector. This has led to a renewed effort for private sector involvement. The government aims to stabilize finances and enhance service delivery.

At the Third-Party Vendors Forum in Accra, Richard Gyan-Mensah spoke about this initiative. He is the Deputy Minister for Energy and Green Transition. He emphasized the need for private sector participation, especially in electricity distribution.

Gyan-Mensah pointed out that poor revenue collection affects financial obligations in the power sector. “Ineffective revenue mobilisation continues to harm the sector,” he said. The government plans to implement fiscal measures and use private expertise to improve efficiency.

The remarks were made during ChargeUp 2025, organized by TextGenesys Limited (TGL). This event gathered vendors, policymakers, and financial partners to discuss energy distribution improvements.

The Deputy Minister clarified that the Electricity Company of Ghana (ECG) will remain operational. However, some distribution activities will open up for private participation. “It’s not about ceding ECG's control,” he explained.

Generation and transmission will stay under state control. The private sector will support ECG’s operations at the distribution level. Currently, ECG does not manage the entire value chain alone.

Michael Acolatse from TextGenesys Limited discussed their digital solutions for ECG's revenue issues. They have created a unified vending platform for over 20 meter types through one interface. For offline meters using cards, they developed a universal card reader.

This innovation allows vendors to serve different customers without multiple systems. With backing from GCB Bank, vendors can operate without upfront capital costs. This eases their burden and improves service access.

The platform enhances power vending for operators and consumers alike. It also boosts ECG’s revenue collection capabilities significantly. This initiative is part of a broader digital transformation aimed at improving transparency and customer experience.

ChargeUp 2025 was organized with ECG and GCB Bank's collaboration. It highlights a shared vision to foster innovation and ensure financial sustainability in Ghana’s energy distribution system.