Parliament Approves GH¢5.3 bn Allocation for Ghana’s Roads Ministry – What It Means for Infrastructure in 2026

Introduction

On 2 December 2025, Ghana’s Parliament gave the green light to a GH¢5.3 billion budget for the Ministry of Roads and Highways for the 2026 fiscal year. The decision is part of the government’s broader “Big Push Programme,” which also earmarks GH¢30 billion for oil‑driven road projects. While the allocation signals a political commitment to modernising the nation’s road network, senior officials warn that the amount falls short of the ministry’s actual needs, which exceed GH¢110 billion in ongoing contracts.

This article breaks down the allocation, analyses its impact on Ghana’s transport sector, compares it with previous budgets, and offers practical advice for stakeholders ranging from contractors to local communities.

Analysis

Budget Context and Fiscal Priorities

The GH¢5.3 bn figure represents the first dedicated line‑item for the Roads Ministry in the 2026 national budget. It sits alongside a GH¢30 bn oil‑linked road investment tranche that is intended to accelerate “primary road” construction under the Big Push Programme. The two streams together aim to reduce congestion, improve regional market access, and support Ghana’s ambition to become a logistics hub in West Africa.

Scope of Ongoing Projects

According to the Roads and Transport Committee, the Ministry is currently overseeing contracts worth more than GH¢110 billion. These include:

• Upgrading the Accra‑Kumasi motorway to a dual carriageway.
• Rehabilitating the Eastern Corridor (Kumasi‑Tamale) to improve north‑south connectivity.
• Constructing new feeder roads in the Upper West and Northern regions.
• Implementing road safety measures such as pedestrian bridges and traffic management systems.

These projects are financed through a mix of government allocations, external loans, public‑private partnerships (PPPs), and donor assistance.

Revenue Gap and Funding Shortfall

Minister of Roads and Highways, Kwasi Agbodza, openly acknowledged that the GH¢5.3 bn allocation “is not enough.” The minister highlighted an “income hole” – a term used to describe the shortfall between the Ministry’s projected expenditures and the cash it will actually receive from the budget. This gap could force the Ministry to:

1. Delay or scale back certain road works.
2. Seek additional financing from the Treasury or external lenders.
3. Accelerate PPP arrangements to share risk and capital.

Economic Implications

Road infrastructure is a proven catalyst for economic growth. According to the World Bank, every 1 % increase in road density can boost GDP by 0.3 % in low‑ and middle‑income countries. In Ghana, improved roads are expected to:

• Reduce vehicle operating costs by up to 15 %.
• Shorten travel times between major economic zones, enhancing trade.
• Stimulate job creation in construction, engineering, and ancillary services.

However, the funding shortfall may dilute these benefits if critical projects are postponed.

Summary

The 2026 budget allocation of GH¢5.3 bn for the Ministry of Roads and Highways marks a political win for Ghana’s transport agenda but falls short of covering the Ministry’s extensive pipeline of projects valued at over GH¢110 bn. To bridge the revenue gap, the Ministry will likely rely on additional Treasury releases, external borrowing, and PPPs. The success of these measures will determine whether Ghana can meet its road‑modernisation targets and reap the associated economic gains.

Key Points

Practical Advice

For Contractors and Suppliers

1. Monitor Treasury releases: Stay updated on any supplementary budget statements that could increase funding for road projects.

2. Explore PPP opportunities: The Ministry has signalled openness to private‑sector participation; prepare robust proposals that demonstrate risk‑sharing and value‑addition.

3. Strengthen compliance: Ensure all bid documents meet the Ministry’s procurement guidelines to avoid disqualification.

For Local Communities

1. Engage early: Participate in public hearings and stakeholder meetings to voice concerns about road alignment, land acquisition, and environmental impact.

2. Leverage community funds: Some districts allocate a portion of road‑project budgets to local development; lobby for transparent allocation.

For Policy Makers and NGOs

1. Advocate for transparent budgeting: Push for detailed breakdowns of the GH¢30 bn oil‑linked tranche to ensure funds reach intended projects.

2. Promote sustainability: Encourage the Ministry to integrate climate‑resilient designs to reduce long‑term maintenance costs.

Points of Caution

• Risk of cost overruns: Large‑scale road projects in Ghana have historically experienced budget overruns of 10‑20 % due to inflation, material price volatility, and delays.
• Debt sustainability: Reliance on external borrowing could increase public debt; policymakers must assess debt‑service capacity.
• Corruption exposure: Procurement processes must be transparent to mitigate graft, especially given the high contract values.
• Environmental compliance: Failure to meet environmental impact assessment (EIA) requirements can halt projects and attract legal challenges.

Comparison with Previous Years

Compared with 2024‑2025, the 2026 allocation shows a modest increase of roughly 10 % in the core budget, but the addition of the GH¢30 bn oil‑linked programme represents a more substantial boost to overall road‑related spending.

Legal Implications

While the allocation itself does not raise immediate legal issues, several statutory obligations must be observed:

1. Public Procurement Act, 2003 (Act 663): All contracts above a certain threshold must undergo competitive bidding, with strict adherence to anti‑corruption provisions.
2. Roads Act, 1997 (Act 247): The Ministry must ensure that road designs comply with national standards for safety and durability.
3. Environmental Protection Agency (EPA) Regulations: Projects require a valid Environmental Impact Assessment (EIA) certificate before ground‑breaking; failure can result in injunctions and fines.
4. Debt Management Framework: Any additional borrowing to cover the revenue gap must be approved by the Ministry of Finance and reported to Parliament, ensuring compliance with Ghana’s debt sustainability targets.

Stakeholders should consult legal counsel to verify that all contractual and regulatory requirements are satisfied before committing resources.

Conclusion

The GH¢5.3 bn allocation approved by Parliament is a clear signal that the Ghanaian government remains committed to expanding and modernising its road network. However, the Ministry of Roads and Highways faces a significant funding gap when measured against its existing contract pipeline of over GH¢110 bn. Bridging this gap will require a mix of additional Treasury releases, strategic PPPs, and prudent external borrowing. Successful implementation will not only ease traffic congestion but also stimulate economic growth, enhance regional integration, and improve the daily lives of millions of Ghanaians.

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