Naagyei 90.3 Fm Agyapa
The National Democratic Congress’ (NDC) 24-hour economy proposal has been questioned by economist Professor Godfred Alufar Bokpin, who claims that given the current energy issues, it is unrealistic.
On Saturday, May 17, he stated on Joy News’ Newsfile that despite politicians’ promises of a 24-hour system, the nation cannot even maintain a dependable 8-hour energy cycle.
He remarked, “You are talking about a 24-hour economy, and you are not even getting power for your eight-hour economy cycle that we are running.”
He said that one of the main risks to economic stability in Ghana is the condition of the energy industry.
“The energy sector is what gives me sleepless nights, aside from careless mining, including illicit mining,” he stated.
“We have witnessed the actions of both major political parties. And at this point, politicisation isn’t beneficial.
He claims that distribution losses at the Electricity Company of Ghana (ECG) are over 40%, which is almost three times higher than the global average.
He emphasised, “That is not sustainable.” “That is extremely high, even if you are only doing 15%. In economics, you cannot discuss realistic pricing at that level of losses.
Such losses cannot be transferred to customers, he clarified.
“All of those losses cannot be transferred to the final customer. Socially and economically, it is illogical.
Additionally, he emphasised collection losses of about 15%, which he once more described as “above world average” and “not sustainable.”
Prof. Bokpin presented a dismal image of the management of the power sector, pointing out that sensitive installations and important state entities are not paying for their electricity.
“You heard the minister say that it’s time for departments, agencies, and ministries to take accountability for their energy use,” he stated.
He referenced public reports of strange trends in electricity use.
I was once reminded by someone: have I observed where the ice cubes used to sell pure water in our country come from? Probably from police stations, someone suggested. This tells you what’s happening, but I’m not claiming it’s real.
He claimed that “there is no way we can see a future in this direction” when technical and collection losses are added to unpaid payments from ministries, departments, and organisations.
Politicians, meanwhile, are making more promises in the midst of everything. He remarked, “That’s why I don’t understand the government’s upbeat tone.”
“We are struggling to run an 8-hour economy while the government is talking about a 24-hour one.”
He urged the private sector to get involved in the downstream distribution chain, arguing that the present ECG operating model is flawed.
“I think we should all encourage the government to involve the private sector in some way. That isn’t equivalent to selling ECG. He explained that the government may still be the only stakeholder.
However, we ought to be able to include the private sector in the allocation of authority and revenue. Capital and private sector efficiency will result from that.
He emphasised that Ghana’s current IMF-supported program is already linked to this kind of transformation. The IMF program includes structural reforms. Additionally, he stated that the government must meet certain unambiguous indicators.
He urged open communication and stated that the Cabinet is anticipated to make a decision regarding ECG’s future.
“This needs to be made very clear to Ghanaians by the government,” he stated.
Prof. Bokpin came to the conclusion that until the underlying issues are addressed, catchphrases like “24-hour economy” are just political theatre.
