SMG backs TUC opposition to ECG private sector participation
The Socialist Movement of Ghana (SMG) has strongly opposed any form of privatisation or private sector involvement in the operations of the Electricity Company of Ghana (ECG), declaring its full support for organised labour’s resistance to the move.
In a statement issued by its Accra Collective on May 26, 2026, and signed by the movement’s Convener, Blaise Tulo, the group said it “unreservedly supports” the stance of the Trades Union Congress (TUC) against plans to introduce private capital into ECG operations.
According to the SMG, Ghana’s transition from the International Monetary Fund’s Extended Credit Facility (ECF) programme to a Policy Coordination Instrument (PCI) arrangement still comes with structural policy conditions, including private sector participation in ECG.
The movement argued that although government officials insist the arrangement does not amount to a “wholesale privatisation” but rather “private participation,” the practical outcome would be no different from previous failed concession agreements.
Referencing the 2019 Power Distribution Services (PDS) concession under the Akufo-Addo administration, the SMG noted that similar assurances were given before the deal eventually collapsed over concerns about invalid insurance guarantees.
“What they called ‘private sector management’ in 2019 is now called ‘private participation’ in 2026. The branding changes, however the consequences do not,” the statement said.
The group further warned that private participation in ECG could result in higher electricity tariffs, job losses, increased casualisation of workers and poorer services for low-income communities.
“Whether private capital takes ownership or takes management, the outcomes for the working class are structurally identical,” the movement stated.
The SMG also cited examples from countries such as Nigeria, South Africa and Tanzania, arguing that electricity privatisation and private management models in those countries had failed to significantly improve service delivery.
According to the movement, “the logic of capital” prioritises profits and investor returns over public service obligations.
As part of its demands, the SMG called on government to immediately halt all plans aimed at transferring ECG’s operational control, management authority or revenue streams to private entities.
The group also demanded full public disclosure of all IMF structural benchmarks relating to ECG under both the ECF and PCI programmes, including implementation timelines and compliance requirements.
Additionally, the movement called for a parliamentary inquiry into the failed 2019 PDS concession and proposed legislation that would make parliamentary approval and public consultation mandatory before any future utility concession agreements are signed.
The SMG further urged government to reject any policy benchmark that promotes the “marketisation” of public utilities while ensuring job security and improved conditions of service for ECG workers.
“ECG was built by the taxes and labour of the Ghanaian people. It belongs to the people,” the statement stressed.
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