The government is intensifying efforts to unlock the potential of Public-Private Partnerships (PPPs) to close Ghana’s widening infrastructure deficit, estimated at $37 billion annually over the next three decades.

This was made known at the KPMG infrastructure roadshow in Accra.

According to the Deputy Minister of Finance, Thomas Nyarko Ampem, traditional financing models alone are no longer sufficient to meet the scale of Ghana’s infrastructure needs, making PPPs indispensable.

“The public purse alone cannot do this. The fiscal space is tight. The demands are huge. The journey is long. PPPs are, therefore, not just desirable, they are indispensable,” he stressed.

Delivering the keynote address, Ampen painted a sobering picture of Ghana's infrastructure record, citing data from the World Bank-supported Global Infrastructure Hub.

He noted that Ghana scores 47 out of 100 in infrastructure quality ten points below the average for lower-middle-income countries.

He added that Ghana invests about 5.0 percent of GDP in infrastructure, which falls short of the LMIC average of 5.4 percent.

This, he said, has translated into a financing gap of 2.8 percent of GDP, far higher than the 1.7 percent average for its peers.

“These figures confirm what citizens feel daily. City residents cry for better transport systems, industries require reliable and cheaper energy, farmers need irrigation, and our young people demand the digital highways of tomorrow," he stated.

The deputy minister announced that the government has reallocated significant portions of petroleum revenues and mineral royalties under the Big Push Initiative to finance large-scale infrastructure.

He said the government plans to invest GH¢13.9 billion into the flagship policy, rising to GH¢21.2 billion by 2028.

This is expected to shift capital expenditure upward by 0.5 percent of GDP during the period, even as the administration pursues fiscal consolidation.

“This is not just a peppering over the cracks. It is an economic reset backed by a US$10 billion Big Push for infrastructure development,” he announced.

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Strengthening systems for value for money

The Deputy Minister of Finance also revealed ongoing reforms in Ghana’s Public Financial Management (PFM) system to ensure infrastructure contracts deliver value for money.

He cited an audit by the Ministry of Roads and Highways which found that arrears of GH¢113 million owed to contractors in 2018 had ballooned to GH¢665 million in interest by 2025 due to delays and weak controls.

“Clearly, we were paying more in interest than in actual road construction. This cannot continue,” he said.

Despite these reforms, Ampem admitted that public funds alone are inadequate to meet Ghana’s infrastructure demand.

He argued that PPPs provide an opportunity to bring in private sector capital, expertise, and efficiency to complement government resources.

By leveraging PPPs, he said, Ghana could improve service quality, spread risks more effectively, and accelerate economic transformation.

However, he acknowledged challenges such as low awareness of PPPs, capacity constraints in structuring projects, and regulatory bottlenecks that slow down transactions.

The government, he assured, is committed to addressing these hurdles and creating an enabling environment for private sector participation.

He further called on both local and international investors to seize the opportunities in energy, transport, digital infrastructure, and urban development to partner government in closing the infrastructure gap.

“The framework is set. The vision is clear. The resolve for further PPP reform is strong. The leadership from President Mahama is committed. Your technical expertise, innovation, and capital are not just welcome; they are essential,” he added.

SP/AE

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