Ghana Must Use Innovation To Empower Its State-Owned Utility Companies

As a people, if we want to overcome the problems that confront us, we must learn to innovate our way out of our difficulties.

The state-owned  utility companies in Ghana  could make themselves more efficient and profitable  through innovation.

 In addition to being a bulk purchaser and distributor  of power, the Electricity Company of Ghana (ECG), for example, could turn itself into a renewable power company - opening up a whole new income stream for itself -  and help its customers cope with power outages at the same time, by studying and replicating the business model of   the U.S. renewable energy company, SolarCity.

 SolarCity provides electricty to its customers by installing solar power systems in their homes. SolarCity keeps ownership of the solar power systems it installs, and charges customers monthly fees for the electrcity those solar power systems generate.

That business model eliminates the initial-cost barrier that prevents your  average householder from opting for  solar power systems. The ECG is used to partnering private entities to deliver services to its customers - the installation of smart prepaid meters being an example. My humble suggestion is that it replicates SolarCity's business model.

It could either invite SolarCity to partner it to replicate its business model here, or use it in a partnership with Deng Limited, which sells solar power systems in Ghana. The leasing companies in Ghana could finance the solar power systems for the partnership. That will enable households countrywide to have solar power systems. The excess power they generate could be credited to their accounts with the ECG - and lower their monthly electricity bills.

The Ghana Water Company Limited (GWCL), could also use innovation to make itself more efficient. That efficiency will lower its costs - which it could pass on to its customers. Why does it not use the nano-tech filtration system pioneered by the UK company, Lifesaver Systems? Surely, a filtration system that eliminates the use of expensive chemicals in producing safe drinking water for public consumption makes sense?

They could also partner Lifesaver Systems to sell their nano-tech filtration systems to bottled water producers - and ensure that consumers will get pure and safe water no matter which brand of bottled water they purchase in Ghana. A definite boon for the health of bottled water consumers nationwide.

Above all, the time has come to empower the state-owned utility companies financially, by partially privatising them on the Ghana Stock Exchange (GSE). It will enable them raise interest-free funds to renew their plant and equipment. We have the shinning example of the hugely successful  partially state-owned oil marketing company, the Ghana Oil Company Limited (GOIL) to guide us, do we not? One hopes the sector ministers in charge of the state-owned utility companies will take note of all the above - and act. A word to the wise...