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Home » Why Privatization Is The Way Forward For Ghana’s Railways

Why Privatization Is The Way Forward For Ghana’s Railways

johnmahamaBy johnmahamaMay 14, 2025 Social Issues & Advocacy No Comments5 Mins Read
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Why Privatization Is The Way Forward For Ghanas Railways

“When the winds of change blow, some people build walls, while others build windmills.” This ancient Chinese proverb resonates deeply in the context of Ghana’s railway sector, which stands at a critical juncture. As railway workers embark on an indefinite strike, citing seven months of unpaid salaries and deteriorating working conditions, it is clear that the status quo is unsustainable. The proverb “A stitch in time saves nine” reminds us that addressing these underlying issues promptly is crucial to preventing further decay. Meanwhile, the wisdom of “If you always do what you’ve always done, you’ll always get what you’ve always got” underscores the need for a transformative approach to railway management. In this light, privatization emerges as a viable solution, offering a pathway to revitalize Ghana’s railway system, attract needed investments, and restore it to its former glory. As Ghana stands at this crossroads, it is essential to confront the reality that its railway sector cannot be revitalized under current management structures. Will Ghana build walls or windmills? The choice is clear.

As railway workers across Ghana embark on an indefinite strike due to seven months of unpaid salaries and deteriorating working conditions, it is imperative to address the underlying issues plaguing the railway sector. This situation highlights a systemic failure within the Ghana Railway Company Limited (GRCL) and underscores the urgent need for a transformative approach to railway management in the country. Privatisation emerges as a viable solution that could not only resolve the current crises but also rejuvenate Ghana’s railway system, formerly a backbone of transportation and commerce.

Ghana’s railway system, established in the late 19th century, was once a vibrant and essential network that connected major cities, facilitated trade, and provided an alternative transportation method to roadways. However, years of neglect, mismanagement, and insufficient investment have left it in a state of disrepair. The recent strike by railway workers, who have been deprived of their rightful salaries for months, is a stark reminder of the challenges that persist. The workers’ plight illustrates a deeper malaise; it is not solely an issue of financial compensation but one that reflects the broader inadequacies of the sector’s governance and investment.

Privatisation can lead to heightened efficiency as private entities are driven by profit motives, incentivising them to cut costs, increase productivity, and innovate. With the right investment, the railway infrastructure can be modernized, maintenance can be improved, and services can be expanded to meet the needs of the population. Countries like Japan and Germany have successfully privatised portions of their railway systems, leading to increased satisfaction and ridership.

Ghana’s cities, especially Accra, are notorious for their traffic congestion, significantly impacting economic productivity and increasing environmental pollution. A well-managed railway system can alleviate this congestion by offering a reliable and efficient mode of transportation. Trains can transport large volumes of passengers and goods quickly and affordably, encouraging more people to leave their cars at home and use public transport. This shift could reduce the strain on road infrastructures and lead to a more sustainable urban environment.

One of the main reasons for the source of conflict in the railway sector today is the absence of timely financial resources to maintain and operate services effectively. A privatised railway system can foster competitive pricing, making travel more affordable for ordinary Ghanaians. This is crucial for a nation where many citizens still struggle against economic hardships, as affordable transport solutions would significantly enhance access to jobs, education, and healthcare.

A privatised railway system would signal to foreign investors that Ghana is serious about developing its infrastructure. The influx of capital could be used to enhance services, purchase new rolling stock, and adopt new technologies. This investment could also generate new jobs, further stimulating the economy.

Privatising the railway would allow the government to shift its focus from direct management to regulation, ensuring that services are safe, equitable, and well-maintained. This role can be crucial in preventing monopolistic practices or inefficiencies that can arise when a single entity controls the entire operation.

The indefinite strike by Ghana’s railway workers is not simply a symptom of late salaries; it signifies a deeper issue within a struggling system yearning for revival. Ghana must acknowledge that its railway sector cannot be revitalised under current management structures. Embracing privatisation offers a pathway to rectify longstanding inefficiencies, attract needed investments, and ultimately restore the railway to its former glory to meet an international standard.

In conclusion, Ghana stands at a crossroads. The railway sector, if appropriately privatised, has the potential to reposition itself as a cornerstone of transportation and economic growth in the country. It is essential to confront this reality and take decisive action to ensure both the livelihood of railway workers and the advancement of Ghana’s infrastructure. This systemic shift is not only an economic imperative but also a social one, as a functioning railway network holds the promise of a brighter future for all Ghanaians.

By Evans Mawunyo Tsikata



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