University of Ghana Business School’s Professor Alufar Bokpin has said the energy sector challenges that has evolved over the years is as a result of corruption, leadership, attitude and greed.
Unlike governments attribution of the problem to finance, like then candidate Akufo-Addo indicated prior to the 2016 elections when erratic power supply engulfed the nation, resulting in dumsor, the Economist says the problems are machinations borne out of greed and corruption.
The Finance and Economics lecturer says the underlining factor crippling Ghana’s energy has been inefficiency over investment that does not explore greater efficiency in the sector.
Prof. Bokpin was speaking with Ghanasonline.com on the sidelines of one of IMANI-GIZ Reform Dialogue Series on Access to Affordable Energy to Support Economic Growth and Job Creation in Ghana on Wednesday, July 21, 2021.
“The energy sector challenges have revolved over the years and underlying all of this is inefficiency over investment because we do not explore greater efficiency in our investment in that sector and therefore the debt rate in terms of generation loses, transmission loses and distribution loses are huge and therefore with all of this it is very difficult to ensure efficient pricing that is supportive of economic activity and job creation,”
He explained the inefficiencies are manually generated and could be traced to individual pockets with the cost of excess capacity which could be running into billions of dollars…asking “what explains that? What investment plan did we have? How did we end up here?”
He said the country’s attempt to solve the energy crises it went through created a financial crises which is burdening the state’s coffers and enriching some individuals. This greed and corruption he said, is not limited to only the energy sector but other areas.
“In our drive to solve the energy crises, we were not prudent, we were not efficient in that drive and it’s not just the crises that we saw in 2012 and 2016 essentially and beyond.”
“It’s been over the years and it’s not only in the energy sector alone but across almost all the sectors, and that explains the reason why when Ghana government is constructing a bungalow, a house, a school, it’ll cost them more than when a private sector or an individual is doing it. Why?”
“That tells you that the margin is very huge and people profit from that. That’s the bottom line. Other than that what’s the incentive in continuing along that path”
“Why should it be more costly for the state to do something at such a level compared to maybe the private sector?,” he quizzed.