The Environmental Service Providers Association (ESPA) has insisted on its strong opposition to the government’s decision to redirect the Sanitation and Pollution Levy (SPL) towards addressing shortfalls in the energy sector under the 2025 budget.
The association, which represents private waste contractors in Ghana, argued that the reallocation of the funds undermines critical waste management and sanitation initiatives that the levy was originally intended to support.
Speaking on the situation, the Executive Secretary of ESPA, Ama Ofori-Antwi has insisted on the association’s crucial role and composition concerning waste management. She said;
“The Environmental Service Providers Association. We normally refer to ourselves as ESPA. So ESPA is an association of private waste contractors. It’s an umbrella body of different, private sectors, different sectors working in the environmental and sanitation sector. So as part of the membership, we have people who are into solid waste management, and we have people who are into liquid waste management.
And with the liquid waste, we have the septic and tears and then the car owners. We have people who are into landfill management and recycling. We even have the informal as part of the association and members who are basically into e-waste as part of the membership.’’
Ama Ofori-Antwi Executive Secretary of ESPA
She further emphasized that ESPA plays a crucial role in assisting the government in keeping the country clean.
Ms. Ofori-Antwi stated that ESPA initially welcomed the introduction of the Sanitation and Pollution Levy in 2021, as it provided much-needed funding for waste management and recycling initiatives. However, the government’s recent decision to divert the levy to offset debts in the energy sector has raised serious concerns.
“Already, when it comes to the sector, funding is always a challenge. Funding sanitation activities is a challenge. And then we come up with a novel idea or we use an Act and then the Act promotes a situation where we can get levies to support the sector, it means under that Act, there is some form of funding to support the sector. When the Sanitation and Pollution Levy was introduced, we were able to put up recycling facilities. The final disposal site is also managed by the fund.”
“Now that the fund is being diverted to go back to go and offset the energy sector bills. Does it mean that the sanitation sector is no longer important? Or is there a special fund elsewhere that is going to be used to support our sector?”
Ama Ofori-Antwi Executive Secretary of ESPA
Lack of Clarity in Budget Allocation
ESPA is also concerned that there has been no clear communication regarding how sanitation services will be funded if the levy is redirected.
“As we all know, when we talk about sanitation, sanitation has a direct correlation to our health. It’s not just about the fund. Even with the existing structures and what is happening, we all can attest to the fact that there are challenges.”
Ama Ofori-Antwi Executive Secretary of ESPA
Ms. Ofori-Antwi pointed out that the levy has significantly contributed to sanitation infrastructure development and job creation.
‘’As a result of that, there has been a lot of job creation. I can attest to the fact that with the recycling compost plants in the 16 regions, over 15,000 jobs have been created.”
Ama Ofori-Antwi Executive Secretary of ESPA
She warned that redirecting the levy could jeopardize these investments and job opportunities.
“So, if the fund is being taken away, how are we going to sustain the existing facilities? And then how do we even continue with the support in terms of job creation?”
Ama Ofori-Antwi Executive Secretary of ESPA
Ms. Ofori-Antwi also highlighted the crucial role of the private sector in Ghana’s waste management industry. She noted that private investors have poured significant resources into sanitation projects with the expectation that the government would provide steady financial support through the Sanitation and Pollution Levy.
ESPA is calling on the government to reconsider its decision and ensure that the Sanitation and Pollution Levy continues to be used for its intended purpose.
The association warns that failing to do so could lead to deteriorating waste management services, increased environmental pollution, and job losses in the sector.
As the government moves forward with its 2025 budget implementation, stakeholders in the sanitation sector will be keenly watching for clarity on how waste management and environmental sustainability will be funded in the absence of the levy.
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