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Investing in Ghana's Utilities Sector


Ghana's utilities sector includes the Water, Sanitation and Electricity Sectors.

Ghana water sector is segmented into two parts and are identified as the Urban Water sector and Community Water sector.

The Urban Water sector comprises about 87 cities and towns where the national water utility- the Ghana Water Company Limited (GWCL) owns and manages water supply. The sector is under the dual authority of the Ministry of Water Resources, Works and Housing (MWRWH) and of the Ministry of Local Government, Rural Development and Environment (MLGRDE).

The Community Water sector deals with over 16,000 rural communities and some 287 small towns. Management of water supply is the responsibility of District Assemblies with facilitation and oversight role by the Community Water and Sanitation Agency (CWSA). Municipal assemblies and districts are responsible for investment, operation and maintenance of water and sanitation infrastructure within the community water sector.

The Environmental Sanitation Sub-Sector covers both liquid and solid waste management and disposal. The institutional framework places the overall responsibility of environmental sanitation with the MLGRDE.

The Government's policy on urban water supply aims to rationalize the urban water sector to promote and improve the delivery of water services in terms of economy, efficiency, effectiveness and satisfaction. The long-term goals of the policy are generally directed at providing the entire country with potable water by the year 2020 with emphasis on the payment of adequate tariffs by consumers to ensure full cost recovery and to provide adequate revenue for operations and maintenance and replacement of the systems. Private sector participation is a key element in the operations and management of urban water supply.

The electricity sector involves the generation, transmission and distribution of electrical energy for industrial, commercial and domestic use in Ghana. In Ghana electricity is run by two utility companies; the Volta River Authority (VRA), Electricity Company of Ghana (ECG) and Ghana Grid Company (GRIDCO).

The utility sector in Ghana has been subjected to structural reforms at various periods. The different reforms took the form of restructuring, commercialization, competition and privatization.