The government has announced intentions to use billions of cedis for major infrastructure projects under the “Big Push” strategy, which aims to close the nation’s severe infrastructure deficit and promote long-term growth.
Thomas Ampem Nyarko, the deputy minister of finance, stated during the KPMG Infrastructure Roadshow in Accra that the government intends to spend GH¢13.9 billion on priority infrastructure projects in 2025. By 2028, this amount should rise to GH¢21.2 billion.
In order to focus on important areas like roads and transportation, energy and power generation, digital infrastructure, and urban and rural development, the funding will mostly come from mineral royalties and petroleum income under the Annual Budget Funding Amount (ABFA).
“This is not a small nudge or a patch-up job. It’s an economic reset, powered by a US$10 billion Big Push for infrastructure development,” Mr. Ampem emphasized.
Urgent Infrastructure Needs
Ghana still has high infrastructure needs. According to estimates, the nation will require US$37 billion a year for the next 30 years in order to satisfy development targets in all areas. It is anticipated that maintaining the current infrastructure alone will cost an extra $8 billion a year.
The Deputy Minister pointed to Ghana’s persistent underinvestment as seen by its low Global Infrastructure Hub index score of 47 out of 100, which is lower than the average for lower-middle-income nations.
“Our cities need better transport. Our industries require dependable energy. Our farmers need modern irrigation. And our youth demand digital highways for the future,” he said.
Emphasis on Public-Private Partnerships (PPPs)
Mr. Ampem emphasized that Public-Private Partnerships (PPPs) will be crucial to bridging the infrastructure deficit even as public spending is being increased.
“The public purse alone cannot meet these needs. The fiscal space is limited, and the demands are vast. PPPs are not just helpful—they are indispensable.”
He pointed out that the establishment of Special Purpose Vehicles (SPVs) to draw in private capital, blended finance, and foreign development investment will be greatly aided by the Ghana Infrastructure Investment Fund (GIIF).
Call to Investors
The Deputy Minister called on domestic and foreign investors to investigate “vast and transformative” prospects in industries like energy, transportation, digital infrastructure, and urban development.
“The framework is in place. The vision is clear. The government’s commitment under President Mahama’s leadership is unwavering. Your innovation, capital, and expertise are not only welcome, they are crucial,” he told investors.
In his closing remarks, he urged close cooperation between the public and private sectors, stressing that a coordinated effort will be necessary to transform infrastructure in a sustainable manner.
Under the subject “Unlocking Ghana’s Public-Private Partnership Potential: Bridging Reform and Results,” the KPMG Infrastructure Roadshow convened corporate executives, engineers, investors, and officials to discuss ways to accelerate infrastructure.
Source: newsthemegh.com