Two Strands Model of the Soft System Methodology Analysis of Private Sector Investment in Power Generation Sector in Ghana

The paper analyses the causes of low private sector investment (PSI) in power generation (PG) infrastructure in Ghana. Series of interviews and stakeholders’ workshops were employed for data collection and validation of findings. The Two Strands Model of the Soft Systems Methodology (SSM) was adopted to define and resolve the problem situation. However, the SSM approach manifested some inherent weaknesses in the areas of the listing and selecting the relevant sector concerns and designing the human activity systems. Consequently, Systems Thinking tool, Causal Loop Diagram was introduced to scientifically identify the fundamental causes of the limited PSI in PG. The paper, therefore, proposes some methodological improvements in the SSM in this regard. Human activity models as well as guidelines were developed to address the fundamental causes of the sparse private investment in PG in Ghana.