Ghana’s Finance Minister, Dr. Cassiel Ato Forso, has revealed that the Ghanaian government will start paying verified contractor arrears after the Auditor-General submits an interim audit report soon.
The NDC administration’s long-awaited payments are a part of what Dr Forson describes as a larger initiative to systematically and openly address the enormous GH¢67 billion in inherited contractor arrears from the previous NPP administration.
This significant step, which marks a crucial shift from verification to disbursement, was disclosed by Dr. Ato Forson during a high-level meeting with Jeremy Awori, Group CEO of Ecobank.
“I am pleased to share that the Auditor-General is expected to submit the interim audit report soon. Upon receipt, verified payments will begin.”
Dr Cassiel Ato Forson, Ghana’s Finance Minister
A sizeable sum of GH¢13 billion has been set aside in the 2025 Budget to start this process, according to the Finance Minister.
Due to non-payment of government obligations, contractors have been dealing with growing debts, unfinished projects, and limited cash flows for years.
According to Dr Forson, restoring trust and liquidity in the domestic business ecosystem is the primary goal of the government’s decision to start paying out in instalments, starting with verified claims.
Commitment to Fiscal Discipline
Dr. Ato Forson was emphatic that the current administration would avoid making the mistake of accruing more arrears.
He cited recent Public Financial Management Act amendments as proof of the government’s dedication to transparency, fiscal restraint, and the abolition of procurement irregularities and ghost contracts.
These changes are a component of a larger public financial management plan aimed at restoring credibility and trust to government expenditures, especially in sectors with high contractor engagement, such as social services and infrastructure.
The government and Ecobank, Ghana’s biggest financial institution by asset base, were able to strengthen their cooperation during the meeting with Jeremy Awori.
The Finance Minister encouraged the bank to amplify its support for Ghana’s ongoing economic recovery, especially in the areas of private sector development and agriculture, two key pillars of the government’s post-crisis transformation agenda.
Jeremy Awori, in response, reaffirmed Ecobank’s strong interest in supporting the country’s rebound and expressed the bank’s readiness to scale up lending and strategic partnerships with government agencies.
He commended the government’s efforts to improve fiscal governance and underscored Ecobank’s confidence in Ghana’s long-term economic prospects.
Ghana’s Shift to Green Energy
Significantly, the meeting also saw the participation of the Minister for Energy and Green Transition, Hon. John Abdulai Jinapor, whose presence highlighted the cross-sectoral nature of Ghana’s economic recovery efforts.
As part of the government’s larger plan to diversify the economy and advance sustainable development, Hon. Jinapor is anticipated to be instrumental in guiding the shift to green energy.
Ghana’s medium-term recovery prospects will probably be shaped by the cooperation between government agencies and significant financial institutions like Ecobank.
The prompt settlement of contractor arrears has the potential to unleash substantial multiplier effects throughout the value chain, from manufacturing and construction to retail and services, as the economy gradually recovers from recent fiscal and external shocks.
If properly executed, the partnership with Ecobank might further supply the financial strength required to support private sector activity, stimulate innovation, and eventually maintain the nation’s economic recovery.
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