Asantehene Otumfuo Osei Tutu II has called for the privatization of state enterprises such as the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG) as a suitable means of sustaining and making them profitable.
He posits that businesses under the control of the government are the exact opposite of their intended purposes.
According to His Majesty, reviews must be conducted to mandate the government with the responsibility of only monitoring and regulating businesses in the country as its involvement in the establishment and management of businesses is counterproductive.
“The government should be looking at policies instead of being involved in industry and all that. It doesn’t work. It’s about time Ghana realises that it’s not going to work for the government to be setting up companies. Government should be contained with policies and the private sector should be involved in setting up the companies. It works that way and therefore it will attract investment.”
The King observes that state companies such as the VRA and the ECG are struggling to deliver on their mandates effectively and efficiently due to a lack of needed capital which is readily available to the private entities.
He therefore proffered their privatization as the best solution to their struggles.
“VRA is a government establishment, let’s give it out and divert it to the private sector and get the right people to man it so that we make money. GRIDCO is a private company, let’s give them the money, get qualified people and let them do it. ECG is in a situation we do not know. That company must be given to a private entity.
While wondering why the government has chosen to continue manning these companies while it lacks the financial capacity to support them, he said, “We are hanging on to industries that we cannot maintain and run. It’s about time we faced reality and decided on what the government should do and what the private sector should do.”
Otumfuo was speaking at the ribbon-cutting ceremony of the Genser Energy Ghana Limited Kumasi Pipeline PPO2 at Anwomaso in the Ashanti Region.
The idea of His Majesty was shared by the Board Chairman of Genser Power Africa, Nana Osae Nyampong VI.
He characterized private enterprises as the engine of growth for any country, providing employment, developing the manufacturing sector and sustaining and enhancing the performance of our economy.
Citing the vesting of all small hydroelectric plants to the Bui Power Authority, the Board Chair queried the prudence of the move in service delivery to Ghanaians.
“One wonders what purpose this vesting will serve and how beneficial it will be to the cause of this country. The clarion call is for the government to develop a robust system which encourages Private sector collaboration in achieving the highest standard of living for this country instead of the slow pace of development, the involvement of a private entity could result in accelerated development for Ghanaians and all people.”
The event took place on April 17, 2024. The event took place on April 17, 2024. Present were the Minister for Energy, Hon Matthew Opoku Prempeh; former Energy Minister, William Owuraku Aidoo; Deputy Minister for Trade, Nana Dokua Asiamah Adjei; Board Chairman of Genser Power Africa, Nana Osae Nyampong VI; Chairman of the Oppenheimer Generation, Jonathan Oppenheimer; and the Chief Executive Officer CEO of Genser Energy Investments LLC, Baffour Asiamah Adjei, among others.
The project is part of the Genser pipeline network which spans about 430 km and consists of 23 gas stations supplying natural gas from the Ghana National Gas Company (Ghana Gas) at Prestea Regulating and Metering Station (PRMS).
Source: Manhyia Palace
