Ghana is losing value for money on its development investments, as thousands of government projects continue to suffer from chronic delays, ballooning costs, and poor execution, according to a new report by the National Development Planning Commission (NDPC).

The Commission’s 2024 Annual Progress Report revealed that over 17,900 capital projects across Ministries, Departments, and Agencies (MDAs) have collectively exceeded their budgets by a staggering GH¢70.3 billion, raising the total from the initial GH¢434.8 billion to GH¢505.1 billion.

The NDPC attributes the overruns to sluggish GDP growth, high inflation, and volatile exchange rates, which have made completing public works increasingly expensive.

The Ministry of Roads and Highways alone accounts for more than half of all ongoing projects, with 9,616 road initiatives at various stages of completion.

Cedi appreciates slightly against major trading currencies on the interbank market

The Ministries of Works and Housing, Defence, and Energy have also recorded significant cost escalations. Notably, the Ministry of Defence’s project costs skyrocketed from GH¢8 billion to GH¢55.6 billion, a more than sixfold increase in just one year.

“Most investment initiatives recorded substantial time overruns, exceeding their planned duration by many years,” the report noted.

“Macroeconomic risks, including rising inflation and volatile exchange rates, made projects more costly to complete,” it added.

Despite efforts to improve coordination and monitoring, project execution remains a persistent challenge. While Metropolitan, Municipal, and District Assemblies (MMDAs) managed to implement nearly 90% of their annual action plans, only 73.4% of planned activities were actually completed.

The NDPC warns that these inefficiencies, which are more than just technical hiccups, represent a serious drain on public resources and a setback to Ghana’s social and economic progress.

The Commission is calling for tighter enforcement of project timelines, greater transparency in procurement, and stronger financial planning to ensure that development projects deliver real value to citizens.

SA/MA

Watch the latest edition of BizTech below: