Ghana’s energy sector is facing intense scrutiny as economist Professor Godfred Alufar Bokpin raises significant concerns about the National Democratic Congress’ (NDC) ambitious proposal for a 24-hour economy. Speaking on Joy News’ Newsfile, Prof. Bokpin questioned the practicality of expanding to a 24-hour system when the nation is already struggling to maintain a reliable 8-hour cycle. His analysis highlights the deep-seated challenges within the energy sector, suggesting that substantial reforms are needed before such a vision can become a reality. The feasibility of a 24-hour economy in Ghana hinges on addressing these critical issues.

The professor’s insights provide a clearer understanding of the hurdles that must be overcome to achieve economic stability. He views the energy sector as one of the most significant threats to Ghana’s economic stability, rivaled only by the impacts of irresponsible mining, emphasizing that the challenges transcend political affiliations.

“Apart from irresponsible mining, including illegal mining, what causes me sleepless nights is the energy sector,” Prof. Bokpin stated, underscoring the gravity of the situation. He also acknowledged that both major political parties have contributed to the current state of the energy sector, reaching a point where politicization hinders progress.

One of the most alarming aspects of Ghana’s energy crisis is the extent of the losses incurred by the Electricity Company of Ghana (ECG). Prof. Bokpin highlighted that ECG records approximately 40% in distribution losses, a figure that far exceeds the world average. “That is not sustainable,” he asserted, emphasizing the detrimental effect of these losses on realistic pricing.

These losses cannot be passed onto the consumer economically or socially, further compounding the issues. Collection losses, which are close to 15%, also exceed the world average, adding to the financial strain. Ministries, departments, and agencies contribute to these losses by failing to pay their electricity bills, exacerbating the already dire situation.

Addressing public perception is crucial, particularly regarding claims about irregular electricity consumption patterns. While some anecdotes circulate—such as the one referencing the source of ice blocks for pure water sellers—Prof. Bokpin noted, “Somebody once reminded me, have I noticed where ice blocks come from in this country for pure water sellers? Somebody said, probably from police stations. I’m not saying this is true, but it tells you what’s going on.” These perceptions, whether accurate or not, underscore the lack of trust and transparency surrounding electricity usage.

Prof. Bokpin questions the government’s optimism regarding the 24-hour economy initiative. “That’s why I don’t understand the upbeat tone from government,” he stated, comparing the current struggle to maintain an 8-hour economy to the ambitious goal of a 24-hour economy. Before considering grand initiatives, he emphasized the need to address core problems within the energy sector.

The Path Forward: Private Sector Participation and IMF Reforms

The current model of ECG operations is unsustainable, necessitating significant reform. Prof. Bokpin explored the possibility of private sector participation in the downstream distribution chain. He clarified that private sector involvement does not necessitate selling ECG; the government can remain the sole shareholder. The potential benefits of private sector involvement include capital infusion and efficiency improvements, crucial for revitalizing the struggling entity.

Reforms are already tied to Ghana’s ongoing IMF-supported program. The Cabinet is expected to decide on ECG’s future, making transparent communication from the government to Ghanaians all the more critical. “The Government must communicate this clearly to Ghanaians,” Prof. Bokpin urged.

In conclusion, Professor Bokpin’s analysis paints a stark picture of Ghana’s energy sector, highlighting critical challenges that undermine the feasibility of a 24-hour economy. His insights emphasize the need for addressing fundamental issues such as distribution and collection losses, coupled with exploring private sector participation in ECG, before ambitious economic plans can be realized. Ultimately, Prof. Bokpin suggests that slogans like the 24-hour economy will remain mere political theatre until concrete actions are taken to resolve the underlying problems. The future of Ghana’s energy sector hinges on transparent communication, strategic reforms, and a commitment to tackling the root causes of the current crisis.