November 29, 2020
Business General

Economist Proposes Institutional Investors For ECG Privatisa …

As the government works to replace the botched Power Distribution Services (PDS) deal through restrictive tendering, an Economist and Risk Analyst has offered some advice on the way forward.
Theo Acheampong, also a senior fellow at think tank, Imani Africa, has proposed to the government to seek local institutional investors in its bid to privatize the Electricity Company of Ghana (ECG).
“If we really want to turn around ECG given that the MCC [Millennium Challenge Company] money will not be coming anymore, then we have to look at other ways of financing and I think that if we look domestically within Ghana we have institutional investors,” he said Saturday on Joy FM/MultiTV’s current affairs programme, Newsfile.

In the long term, an Initial Public Offering (IPO) may even become necessary, said Mr. Acheampong.
The Ghana Infrastructure Development Fund, according to Mr. Acheampong, is a local institutional investor fit to pitch some money and take some shares in the electricity distribution company for the country’s southern sector of the country.
The government is racing against time to find new private managers for ECG following the termination of the controversial PDS concession agreement over irregularities.
A letter signed by the Finance Minister, Ken Ofori Atta, recommended a restricted tender process to replace PDS.

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