Gov’t steps up partnership with private sector to bridge US$37bn infrastructure gap
By Praisebell Rosemond Larbi
The Government has announced a renewed drive to harness Public–Private Partnerships (PPPs) as a core strategy to close the country’s USD37 billion annual infrastructure financing gap projected over the next three decades.
Delivering the keynote address at the KPMG Infrastructure Roadshow in Accra, Deputy Finance Minister Thomas Nyarko Ampem said traditional public financing models can no longer meet the scale of Ghana’s needs.
“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.
Lagging Infrastructure Performance
Mr Ampem painted a sobering picture of Ghana’s current record, citing the World Bank-supported Global Infrastructure Hub, which scores Ghana 47 out of 100 in infrastructure quality, ten points below the lower-middle-income average.
He noted that Ghana invests about 5.0 per cent of GDP in infrastructure, less than the 5.4 per cent LMIC average, creating a financing gap of 2.8 per cent of GDP, well above the peer average of 1.7 per cent.
“These figures confirm what citizens feel daily. City residents cry for better transport systems, industries require reliable energy, farmers need irrigation, and our youth demand the digital highways of tomorrow,” he indicated.
Big Push Initiative
To confront the shortfall, the government has reallocated petroleum revenues and mineral royalties under its Big Push Initiative to finance large-scale projects.
Mr Ampem said the plan will channel GHS13.9 billion initially, rising to GHS21.2 billion by 2028, lifting capital expenditure by 0.5 per cent of GDP while maintaining fiscal consolidation.
“This is not just a peppering over the cracks. It is an economic reset backed by a USD10 billion Big Push for infrastructure development,” he remarked.
Ensuring Value for Money
Highlighting the need for fiscal discipline, the Deputy Minister cited a Ministry of Roads and Highways audit that found arrears of GHS113 million owed in 2018 ballooned to GHS665 million in interest by 2025 due to delayed payments and weak controls.
To prevent a repeat, Parliament has amended the Public Procurement Act to require approved budget allocations before projects begin.
A new PFM Compliance Division now monitors adherence to procurement and commitment controls.
PPPs as Catalyst
Despite these reforms, Mr Ampem emphasised that public funds alone remain insufficient. He argued that PPPs can bring in private capital, expertise, and efficiency to deliver high-quality infrastructure, spread risk, and accelerate economic transformation.
He acknowledged hurdles such as low awareness, limited capacity to structure deals, and regulatory delays, but assured investors that government is tackling these issues to create an enabling environment.
Call to Investors
Urging local and international investors to explore opportunities in energy, transport, digital infrastructure, and urban development, Mr Ampem said: “The framework is set. The vision is clear. The resolve for further PPP reform is strong. President Mahama’s leadership is committed. Your technical expertise, innovation, and capital are not just welcome; they are essential.”
He concluded with an African proverb: “If you want to go fast, go alone; if you want to go far, go together.”
The KPMG Infrastructure Roadshow brought together policymakers, financiers, engineers, and business leaders under the theme “Unlocking Ghana’s Public-Private Partnership Potential: Bridging Reform and Results,” exploring innovative models to finance Ghana’s massive infrastructure needs.
