Ghana Road Maintenance Funding Gap Widens to 63 Percent

    World Bank report reveals only 37% of needs met, down from 45% previously, impacting economic growth and infrastructure value.

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    Ghana’s road maintenance funding has fallen significantly short, covering only 37 percent of its estimated needs in 2024. This critical shortfall represents a decline from the 45 percent coverage recorded between 2018 and 2021, according to a recent World Bank disclosure.

    This deepening funding gap raises serious concerns about the overall condition of Ghana’s extensive road network. The lack of adequate maintenance threatens the long-term value of previous investments in road infrastructure. Poor road conditions directly impact transportation costs and access to essential services for many communities.

    The current situation fits into a broader narrative of fiscal challenges and infrastructure development in Ghana. The country’s trunk road network, valued at approximately US$10 billion, requires an estimated US$685 million annually for proper maintenance. This annual requirement is equivalent to about 0.83 percent of Ghana’s Gross Domestic Product (GDP). However, available funding has consistently failed to meet this necessary amount, creating a persistent structural problem for the sector. This ongoing issue hinders economic activity and connectivity across the nation.

    The World Bank highlighted these findings in its latest Ghana Economic Update, titled 'Reset for Growth – Sustaining Macroeconomic Recovery and Unlocking Transport for Transformation.' The report specifically attributed part of the decline in maintenance financing to the implementation of the Earmarked Funds Capping and Realignment Act. This Act contributed to the reduction in the proportion of road maintenance needs being financed to the current 37 percent in 2024. Furthermore, the report identified weaknesses in the transfer of Road Fund revenues as a major concern. Between 2016 and 2020, only 58 percent of revenues collected from road user charges were transferred to approved road maintenance budgets. The remaining funds were redirected to other areas of the national budget, further exacerbating the problem. Similarly, Road Fund revenues covered just 45 percent of actual maintenance requirements between 2018 and 2021, falling well below the government’s target of 65 percent. The situation worsened in 2022 and 2023, when only between 50 and 60 percent of budgeted Road Fund allocations were released. By the end of 2024, accumulated arrears had reached GHS 5.75 billion, indicating a significant financial burden.

    The implications of this persistent underfunding are severe and far-reaching. The World Bank warns that delaying road maintenance carries significant financial consequences. Roads allowed to deteriorate substantially become far more expensive to restore. Rehabilitating roads after they have fallen into poor condition could cost between five and seven times more than carrying out preventive maintenance. This means the government will face much higher costs in the future to fix problems that could have been prevented. The funding constraints have already affected the overall condition of Ghana’s road network. By the end of 2025, only 47 percent of the country’s estimated 94,000-kilometre road network was classified as being in good condition. Another 32 percent were considered fair, while 21 percent were in poor condition. The condition of trunk roads was particularly concerning, with only 35 percent rated as good. Earlier assessments also showed that 64 percent of urban roads and 65 percent of feeder roads were either in fair or poor condition. These figures fall short of the government’s 20212025 target of ensuring that 60 percent of Ghana’s roads were in good condition. Beyond transportation challenges, inadequate road maintenance has wider economic and social implications, particularly for poorer communities. Poor road conditions can restrict access to markets, increase transportation costs, and raise farm-gate prices. These effects become more severe during the rainy season. Feeder roads remain particularly important to agricultural communities because they provide vital links between production areas and markets. However, routine maintenance on such roads has achieved an average performance of only 45 percent, against a target of 65 percent. Inadequate maintenance could also undermine the economic benefits expected from major road investments. The World Bank cited Ghana’s Second Transport Rehabilitation Project as an example. The project’s economic rate of return dropped from 38 percent at appraisal to 16 percent at completion. Inadequate maintenance was among the key factors contributing to this significant decline in economic returns. Decision-makers must address the structural issues in road funding to prevent further deterioration and ensure sustainable economic development.

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