Treat Power as a Business, Not a Free Service – UBA Board Chair Urges African Leaders
The Chairman of the Board of United Bank for Africa (UBA) Ghana, Mr Kweku Andoh Awotwi, has urged African governments to stop treating electricity provision as a social service and instead operate it as a financially sustainable enterprise.
He warned that failure to do so undermines efforts to expand and maintain reliable electricity access across the continent.
According to him, for decades, many African countries have regarded electricity as a public good, which has led to underinvestment in generation, transmission, and distribution infrastructure, adding that “What unbundling has done is show us that the provision of electricity cannot be reliably sustained as a social service if the parts of the chain don’t pay for themselves.”
Mr Awotwi made these remarks on Friday during the Africa Sustainable Energy Dialogue, held virtually via Zoom under the theme “Bridging Africa’s Energy Access Gap: Challenges, Innovation and the Path Forward.”
The Africa Sustainable Energy Dialogue is the flagship event of the Africa Sustainable Energy Centre, aimed at pioneering sustainable energy solutions through strategic conversations, innovation sharing, and collaborative action.
This year’s focus was to address Africa’s persistent energy access gap by exploring its root causes, highlighting innovative solutions, and shaping a path forward.
Mr Awotwi, who is also a former Executive Vice President of Tullow Oil PLC noted that although reforms such as unbundling and privatisation were meant to improve performance and attract investment, their impact has been limited.
Citing Ghana as an example, he explained that despite introducing frameworks for private sector involvement, the country still owes private energy providers over $2 billion—evidence of systemic financial challenges.
“In places like Nigeria and Ghana, privatisation did not solve the fundamental issues of liquidity and governance. A decade later, we’re still facing the same problems—insufficient investment, meter shortages, and poor cost recovery,” he said.
He attributed the persistent problems to political interference, weak governance of state utilities, and the failure to implement cost-reflective tariffs.
Mr Awotwi also stressed the missed opportunity in deploying decentralised renewable energy technologies. “We haven’t taken full advantage of grid-parity solar solutions because our electricity systems are not financially viable. Without a solvent energy sector, even renewables can’t thrive,” he stated.
He called on African leaders to show strong political commitment in adopting bold reforms, including restructuring tariffs, improving governance, and allowing private operators the freedom to function without undue influence.
Adding his voice, energy expert Dr Ofosu Ahenkorah said electricity access is a leadership issue, and governments must take full responsibility. “If leaders are not able to deliver higher access rates, they are to be held accountable,” he said.
Dr Ahenkorah recalled that Ghana established its first commercial electricity-producing plant in 1966 through strong political will, even mortgaging the plant’s output to fund the Akosombo Dam.
He noted that Ghana took 23 years to reach just 19 percent access but made rapid progress under the 1989 National Electrification Scheme, reaching 87 percent today through deliberate government action and funding.
He also highlighted the role of initiatives like the Self-Help Electrification Programme, where communities supported electrification by buying poles and providing communal labour—again, backed by decisive government leadership.
BY STEPHANIE BIRIKORANG
