Economist and Professor of Finance, Godfred Bokpin has expressed doubts about the feasibility of the government’s proposed 24-hour economy policy, citing persistent inefficiencies in the country’s electric power sector.

Speaking on Joy FM’s Newsfile programme on Saturday, [May 17, 2025], Professor Bokpin said the current state of power supply makes it difficult to sustain basic operations, raising concerns about the viability of extending economic activity around the clock.

“We are not even getting power for our eight-hour economy,” he said in reference to ongoing power outages affecting various parts of the country. “So I suppose they [the government] will regret that particular promise because it doesn’t look like they can fulfil it.”

Professor Bokpin described losses in electricity distribution as a major challenge, noting that the Electricity Company of Ghana (ECG) records losses of about 40 per cent, well above international averages. According to him, such levels of loss make it difficult to charge realistic tariffs that reflect the cost of supply.

“Even 15 per cent is high, but 40 per cent is criminal,” he stated.

He added that revenue collection remains a concern, with nearly 15 per cent of billed electricity going unpaid.

He said this situation is compounded by non-payment from some ministries, departments and agencies, as well as installations that operate without meters.

Professor Bokpin questioned how a 24-hour economy could be supported under such conditions, adding that power supply disruptions affect all sectors regardless of political or social affiliation. “When your power goes off, it doesn’t discriminate,” he said.

He suggested the inclusion of private sector participation in electricity distribution and revenue collection to help address operational inefficiencies.

He clarified that this approach would not require privatising ECG entirely, as the government could still retain ownership while allowing private operators to handle specific functions.

“Government can still be the sole shareholder, but we need private sector efficiency,” he said. “There are procurement issues, revenue shortfalls and internal system weaknesses that need to be addressed.”

Professor Bokpin also called for clarity on the government’s position regarding ECG under the International Monetary Fund (IMF) reform programme. 

He said the Cabinet is expected to take a decision on the role of private participation, and that any such decision should be communicated clearly to the public to avoid confusion.

“Ghana needs help. We cannot continue with this model,” he said. “There must be reforms if the energy sector is to support economic transformation.”

President John Dramani Mahama

International anti-corruption actor, Raphael Godlove Ahenu, has called on President John Dramani Mahama to prioritise effective resource governance to build a resilient economy for job creation and poverty reduction.

“In fact, resetting the sector remains crucial, as the nation’s economy rebound,” he told the Ghana News Agency (GNA) in an interview in Sunyani and lauded the President, urging the government to push long-term economic resilience through realistic monetary policies.

Ahenu, also the Founder of the Sunyani-based Global Media Foundation (GloMeF), an anti-corruption media advocacy Non-Governmental Organisation (NGO) argued that the nation natural resources had huge potential to “lift millions out of poverty if properly managed with transparency, accountability and sustainability.”

He said the GloMeF worked to improve the socio-economic livelihoods of the vulnerable in society, targeting adolescents, saying the “nation’s economy is gasping for relief and the quickest and most effective oxygen we can give it lies in our resource sector.”

President Mahama must therefore make it a central pillar of his administration to reform, as his government put the nation on the edge for economic recovery and rebound, he advised.

Ahenu said decades of “poor oversight, corruption, weak regulatory enforcement, and inequitable distribution of resource revenues have undermined the country’s development efforts.”

“It’s unacceptable that while our lands are rich in gold, bauxite, oil, and other natural resources, the majority of our people continue living in deprivation and abject poverty,” he said.

For Ahenu’s view, strategic reforms in the mining, oil, and forestry sectors supported by strong institutions and citizen engagement could dramatically improve revenue mobilization, curb illicit financial flows, and promote inclusive growth.

“Resetting the resource sector will not only restore investor confidence but also secure funds for education, healthcare, and infrastructure,” he stated, adding “it’s the foundation for building a resilient and self-reliant economy too.”

Mr Ahenu advocated implementation of stronger monitoring mechanisms, community participation in resource management, and transparency in contracts and revenue utilization, recommending the review of existing mining agreements, and thereby tightening environmental regulations to safeguard communities affected by extractive activities.

His advocacy comes in the wake of many Ghanaians demanding greater accountability in the management of the nation’s wealth.

Ahenu also called on the Civil Society community and the media to hold the government accountable, by ensuring that the nation’s natural riches benefited all, and just not privileged for few.

Ghanaian youngster Jerry Afriyie extended his impressive form in Spain’s Primera Federación with a decisive goal on Saturday, helping CD Lugo secure a crucial 2-0 victory against Zamora CF.

The win brings Lugo closer to safety as the season nears its end, intensifying their fight against relegation.

At just 18 years old, Afriyie has now contributed two goals and an assist in his last four matches, making a significant impact during this critical phase for Lugo.

Saturday’s performance highlighted his growing influence, with a moment of brilliance that effectively sealed the three points for his side.

The breakthrough came in the 38th minute when Zamora defender Kike, under pressure, headed a set-piece delivery into his own net.

Lugo maintained control, keeping Zamora on the back foot while searching for a second goal.

That second goal arrived midway through the second half, thanks to Afriyie’s superb vision and technique. Picking up a long pass near the center circle, he calmly lifted the ball over the advancing Zamora goalkeeper with exquisite composure and timing.

Despite Ghanaian midfielder Eugene Frimpong’s introduction for Zamora in the second half, the visitors couldn’t mount a comeback.

With this victory, Lugo moves a step closer to avoiding relegation, with Afriyie’s form likely to play a pivotal role in their survival quest.

Featured

Alberto Mario Noretti

May – 18 – 2025 , 08:18

1 minute read

The Public Interest and Accountability Committee (PIAC), a key watchdog over the country’s oil revenues, has been stripped of its petroleum funding following a legal amendment by the current government.

The change, assented to by President John Dramani Mahama on April 2, revises the Petroleum Revenue Management Act (PRMA) – Amended Act, 2015, specifically Sections 21 and 57, removing a crucial source of financial support that once ensured PIAC’s independence and effectiveness.

The Amended Act 2015 stipulated that a minimum 70 percent of the Annual Budget Funding Amount (ABFA) – which is the portion of petroleum receipts approved by parliament to support the national budget for a financial year – should be used for public investment expenditure.

This, according to the law, must be consistent with a long-term national development plan.

It also directed that PIAC’s annual budget, submitted for inclusion in the national budget for each financial year, should be charged on the ABFA.

However, the new provision – which has sparked concern among civil society advocates about the future independence of PIAC – alters the Act, which had guaranteed PIAC a slice of oil proceeds to fund its oversight work.

The PRMA (Amended), 2025 (Act 1138) provides as follows: Section 21 of Act 815 amended – The Petroleum Revenue Management Act, 2011 (Act 815), referred to in this Act as the ‘principal enactment’, is amended by the substitution of section 21, “Use of the Annual Budget Funding Amount”.

It goes further to state that the ABFA is part of the national budget and its use and expenditure are subject to the same budgetary processes which are necessary to ensure efficient allocation, responsible use and effective monitoring of expenditure.

According to the latest revision, “The use of annual allocations of the Annual Budget Funding Amount shall be (a) to maximise the rate of economic development; (b) to promote equality of economic opportunity with a view to ensuring the well-being of citizens; (c) to undertake even and balanced development of the regions; and (d) guided by a medium-term expenditure framework (aligned with a long-term national development plan) approved by parliament.”

It also stated that: “For any financial year, (a) The annual budget funding amount shall be used for infrastructure development; and (b) A maximum of five percent of the amount in paragraph (a) shall be allocated to the District Assembly Common Fund for the purpose of infrastructure development”.

For Section 57 of Act 815 amended, the latest revision states: “The principal enactment is amended in section 57 by the repeal of subsection (3)”.

This development, according to the Africa Senior Programme Officer-Natural Resource Governance Institute (NRGI), Denis Gyeyir, takes PIAC a decade backward to pre-2015 days when PIAC funding was at the pleasure of the Ministry of Finance.

“The Committee, in most cases, had to rely on oversight actors and media advocates who had to ‘make noise’ before funds would be disbursed for PIAC’s work. One does not expect that the Minister of Finance, who is subject to PIAC’s oversight mandate, would be given the discretion on PIAC’s funding.”

Mr. Gyeyir contends that the decision also reflects a lack of consultation in the amendment process, wherein PIAC itself – as a key stakeholder – was not consulted in such a major decision that impacts its work.

Although the law refers to a ‘long-term national development plan’, Mr. Gyeyir argued that no such binding plan exists, only medium-term frameworks, making alignment impossible in practice.

He noted that the amendment reflects a lack of political will to adopt or comply with a long-term development strategy.

Mr. Gyeyir further criticised government’s decision to eliminate the priority area provision, saying it undermines the ABFA’s intended.

“Over the years, categorising priority areas has allowed for all kinds of spending – often leading to a long list of projects that receive limited funding and remain incomplete for years,” he said.

While he acknowledged that the amendment’s exclusive focus on infrastructure resolves past controversies over recurrent spending such as high allocations to Free SHS, it does little to solve the deeper issue of ABFA being spread too thin across numerous projects… many of which stall due to inadequate funding.

He added that the amendment process itself is shrouded in secrecy, noting that a comprehensive PRMA review initiated in 2019 could have been a better foundation. “The issues go beyond ABFA spending. They touch the entire framework for managing petroleum revenues,” he said, warning that a piecemeal approach risks entrenching inefficiencies instead of fixing them.

The Executive Director-Centre for Social Impact Studies (CeSIS), Mr. Robert Tanti Ali, similarly argued that PIAC’s ability to carry out its mandate of holding state actors accountable for the utilisation of petroleum revenues will be greatly impaired.

“The PRMA was promulgated and guided by a desire to avoid the mistakes in the mining sector. The current arrangement regarding the PRMA pushes PIAC back to the very space where its creation was meant to avoid,” he observed.

“Government is failing to think outside the box when it comes to the utilisation of petroleum revenues. It is consumed by a strong desire to use petroleum revenues for prosecuting its Big Push agenda, without realising the long-term harm it is doing to other key sectors of the economy that have traditionally relied on petroleum revenues. Ultimately, Ghanaians will be worse for it, sadly,” he stated.

PIAC has yet to officially comment on the latest development, despite the recent launch of its 2024 Annual Report.