• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 9, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Ghana’s Infrastructure Financing Deficit, Budget Rigidity Highlighted 

November 28, 2024
Lilian Ahedorby Lilian Ahedor
in General News
0
Ghana’s Infrastructure Financing Deficit, Budget Rigidity Highlighted 

infrastructure

Franklin Cudjoe, President of IMANI Africa, has highlighted that Ghana is facing a significant infrastructure financing deficit, which is exacerbated by the country’s ongoing macroeconomic difficulties. 

He emphasized that, given these challenges, it is essential for the government to reconsider its approach to capital expenditure, especially in areas where resources are limited. 

Cudjoe identified high budget rigidity as one of the primary factors hindering effective infrastructure financing, noting that the country’s rigid financial planning makes it difficult to reallocate resources to priority projects or adapt to changing economic conditions.

RelatedPosts

Ghana Moves to Overhaul Scholarship Regime with New Bill

Ghana Slammed for UN LGBTQ Vote Abstention

Bright Simons Slams E&P Over Gold Mine Controversy

“For instance, the share of statutory funds as a percentage of total revenues has exceeded 20% since 2010.

“Within this period, compensation has also increased considerably, occupying more than half of tax revenues except in 2023. In 2022, capital expenditure as a share of GDP was about 3.9%, which declined to 3.3% after the first IMF review, an expected outturn in 2023 was 2.5%”.

Franklin Cudjoe

He further explained that similarly, goods and services expenditure is expected to decrease by 1%, down from 2% in 2022. 

He asserted that these are the only two expenditure categories where the private sector can step in to help. 

Mr. Franklin Cudjoe President IMANI Africa
Mr. Franklin Cudjoe, President-IMANI Africa

According to Cudjoe, the goal behind this adjustment is to shift about 3% of GDP in expenditure to be covered by the private sector, effectively alleviating the rigidity in the national budget. 

He indicated that at present, capital expenditure is estimated at US$1.87 billion, yet Ghana’s actual infrastructure financing needs range between US$4-5 billion annually from 2021 to 2030, according to the Global Infrastructure Hub. 

Franklin Cudjoe asserted that this gap underscores the urgent need for innovative funding solutions and increased private-sector involvement to bridge the shortfall in infrastructure financing.

Cudjoe Cautions on NPP’s Private Sector Infrastructure Financing Plan

Franklin Cudjoe noted that the NPP’s plan to cut 3% of GDP (GH₵30 billion) from government spending and shift it to the private sector relies on the assumption that businesses will be willing to finance public infrastructure and services.

This approach relies heavily on the belief that private investors and businesses will not only have the capacity to invest in critical public infrastructure but also the willingness to take on such a significant financial responsibility. 

However, Cudjoe cautioned that this strategy might face challenges, especially considering the risk profiles of such large-scale infrastructure projects and the current economic climate.

NPP
New Patriotic Party, NPP

“The World Bank’s Private Participation in Infrastructure indicates that Ghana has received only 18 projects worth 7 billion between 2010 and 2023, and South Africa with 110 projects estimated at US$23 billion.

“Comparatively, electricity is the dominant sector for all three countries. This shows that private sector investment is not competitive in Ghana compared to peers given that most of our capital expenditures are foreign-financed”. 

Franklin Cudjoe

He explained that this means it is not guaranteed that the private sector can mobilize the necessary financing, as private investors may be hesitant to commit such large amounts without a clear and secure return on investment. 

Moreover, Franklin Cudjoe highlighted the significant risks involved in public procurement, particularly due to excessive political interference, which often undermines the transparency, efficiency, and fairness of the process. 

This, he implied, could deter private sector involvement, as the potential for corruption and mismanagement in such projects creates an unstable environment for investment. “The government would need transparent measures to minimize the risk of contract over-pricing and value-for-money”. 

He emphasized that, in addition, there must be robust and effective monitoring systems in place to track all cost items being rationalized and removed from the budget as part of this intervention. 

Cudjoe noted that these systems would ensure transparency and accountability, enabling the government to assess the impact of the cuts and prevent mismanagement. 

Moreover, he indicated that such mechanisms would help ensure that the resources saved are effectively redirected toward more efficient public service delivery. “This would not affect public finance accounting”.

READ ALSO: KOD Name-Drops Personalities Behind ‘Survival and Success’

Tags: economyGhana NewsinfrastructureNPPPublic-Private PartnershipWorld Bank
Please login to join discussion
Previous Post

Israel-Hezbollah Ceasefire Violated

Next Post

Tullow Oil to Enhance Production Amid Jubilee Field Challenges

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

July 9, 2025
LGBTQ concerns in Ghana
General News

Ghana Slammed for UN LGBTQ Vote Abstention

July 9, 2025
Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns
Securities/Markets

Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns

July 9, 2025
Bright Simons, E&P, Azumah
General News

Bright Simons Slams E&P Over Gold Mine Controversy

July 8, 2025
Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
Banking

Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade

July 8, 2025
Kwasi Sibo
Sports

Kwasi Sibo Eyes Black Stars Call-Up

July 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

by Evans Junior OwuJuly 9, 2025
LGBTQ concerns in Ghana
General News

Ghana Slammed for UN LGBTQ Vote Abstention

by Lilian AhedorJuly 9, 2025
Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns
Securities/Markets

Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns

by Stephen M.CJuly 9, 2025
Bright Simons, E&P, Azumah
General News

Bright Simons Slams E&P Over Gold Mine Controversy

by Silas Kafui AssemJuly 8, 2025
Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
Banking

Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade

by Stephen M.CJuly 8, 2025
Kwasi Sibo
Sports

Kwasi Sibo Eyes Black Stars Call-Up

by Evans Junior OwuJuly 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
LGBTQ concerns in Ghana
Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns
Bright Simons, E&P, Azumah
Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
Kwasi Sibo
[/vc_row_inner]

Recent News

  • Ghana Moves to Overhaul Scholarship Regime with New Bill
  • Ghana Slammed for UN LGBTQ Vote Abstention
  • Databank Forecasts Prolonged Slump in T-Bill Demand Over Low Yield Concerns
  • Bright Simons Slams E&P Over Gold Mine Controversy
  • Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.