Vice President Dr Mahamudu Bawumia has emphasized exploring Public-Private Partnerships (PPPs) to address Ghana’s infrastructure financing challenges.
Speaking after an engagement with stakeholders on road infrastructure, Dr Bawumia highlighted that leveraging PPPs could shift the burden of financing from the public sector to private investors, thus freeing up budgetary resources for other critical sectors.
Dr. Bawumia underscored the importance of innovative and bold approaches to financing infrastructure projects.
He expressed confidence that stakeholders would devise sustainable solutions to bridge the significant infrastructure financing gap.
“I am confident that all stakeholders will come up with sustainable solutions to our infrastructure financing gap,” he stated in a Facebook post.
Recent estimates reveal that Ghana requires $12 billion to address a maintenance backlog and optimize its road network, which spans approximately 94,203 kilometres.
However, current funding levels cover only about 38% of this requirement, resulting in deteriorating road conditions, increased maintenance costs, and missed economic opportunities.
In his address, Dr Bawumia also reflected on the previous tolling system, noting that before its abolition in 2021, Ghana generated GHS 70 million annually from road tolls.
He argued that a broad-based tolling system could significantly increase revenue.
“If everybody paid the tolls, the state could have generated GHS 2 billion per annum,” he said.
Dr. Bawumia proposed a revised tolling framework that could address inequities in the current system.
He suggested implementing a broad-based tolling approach, possibly through a fuel tax, which would be more inclusive and equitable.
“The current architecture of tolling tends to exclude even the wealthier parts of the population.
If we consider a broad-based tolling system, everyone contributes, and revenue could be much higher,” he explained.
The government plans to reintroduce road tolls in 2025. Finance Minister Dr Mohammed Amin Adam has confirmed that the Cabinet has approved a framework to facilitate this process.
The decision follows the e-levy’s underperformance as a substitute for road tolls, prompting a return to tolling to meet infrastructure funding needs better.
Dr. Bawumia’s call for PPPs and broad-based tolling reflects a proactive approach to solving Ghana’s infrastructure challenges. It aims to enhance efficiency and ensure equitable contributions from all sectors of society.
