DACF Allocations Worsen Poverty, NDPC Chairman Warns

    Inequalities in fund distribution are widening development gaps, particularly in the Savannah Belt, according to Dr Nii Moi Thompson.

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    The National Development Planning Commission (NDPC) Chairman, Dr Nii Moi Thompson, has stated that disparities in District Assemblies Common Fund (DACF) disbursements are worsening poverty. He warned that the current allocation system is creating significant infrastructure inequalities across Ghana.

    Dr Thompson spoke at the Ishmael Yamson & Associates Business Roundtable 2026. He explained that the Savannah Belt region faces persistent geographical poverty. This is partly due to insufficient investment in infrastructure. Uneven resource distribution also plays a role in this disparity.

    Recent data from the Ghana Statistical Service's Multidimensional Poverty Report supports this. The report identifies the seven poorest regions as Northern, Savannah, Upper East, Upper West, North East, Oti, and Bono East. All these regions lie within the Savannah Belt. These areas cover about 54 per cent of Ghana’s landmass. They are home to 26 per cent of the country’s population.

    Poor living conditions plague these regions. This includes inadequate electricity, housing, and sanitation. Access to clean drinking water is also a challenge. These issues point to deep-seated infrastructure problems. Dr Thompson argued that DACF allocation distortions are making the situation worse. The seven poorest regions contain 25.85 per cent of Ghana’s population. However, they received only 24.93 per cent of DACF funds. In contrast, the top seven recipient regions, with 69.5 per cent of the population, secured over 72 per cent of DACF allocations. "Such disparities aggravate infrastructure deprivation, constrain economic growth and perpetuate poverty," Dr Thompson stated.

    Despite these concerns, Dr Thompson acknowledged efforts by DACF Administrator Michael Harry Yamson. He praised Mr Yamson's work to correct imbalances and promote fairer distribution. The NDPC Chairman stressed the need for more balanced infrastructure investment. He also called for targeted development policies. These actions are crucial to reduce regional inequality gaps. They are needed to improve living standards in underserved communities. The current situation risks undermining Ghana's overall development agenda.

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