Ghana’s Infrastructure Dilemma: The $37 Billion Question

Ghana's Infrastructure Dilemma: The $37 Billion Question

Ghana, a country in West Africa, is facing a significant infrastructure challenge. The World Bank estimates that Ghana requires an annual investment of $37 billion to address its infrastructure deficit and support sustainable urbanisation.

The Bank's assessment was made at the ninth Ghana Urban Forum in Accra, where the government launched the National Urban Policy. The policy aims to promote inclusive urban development, affordable housing, improved mobility, climate resilience, and stronger citizen participation in local governance.

The Urbanisation Challenge

Ghana has become one of the most urbanised countries in Sub-Saharan Africa, with 57 percent of its population living in cities and towns. The urban population is projected to more than double by 2050, putting a strain on the country's infrastructure. Madhu Raghunath, Urban Resilience and Land Practice Manager at the World Bank, said that Ghana's Infrastructure Plan (2019) estimates a staggering $37 billion is needed annually to build the infrastructure that supports economic growth and improves quality of life by 2047.

Consequences of Inaction

The consequences of inaction are already being felt. In Accra alone, flood risk to assets is estimated to exceed $20 million a year in average annual losses, among the highest such figures in Sub-Saharan Africa. The number of people living in slums has increased from 5.5 million in 2017 to 8.8 million in 2020. Unmanaged solid waste and traffic congestion are polluting the air and contributing to climate change.

Calls for Integrated Investment

Raghunath called for integrated investment in transport, power, waste management, and housing infrastructure to support urban development and job creation. She also urged the government to strengthen public-private partnerships, municipal financing, and local institutions to improve urban planning and service delivery. The Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, said the policy was designed to improve living conditions in informal settlements while preventing the emergence of new slums.

A Central Role for Urbanisation

Raghunath emphasized the central role of urbanisation in Ghana's jobs and productivity agenda. Well-planned cities reduce the cost of doing business, connect firms to workers and markets, and enable people, especially young people and informal workers, to access services, mobility, skills, and better livelihood opportunities. The National Urban Policy aims to promote inclusive urban development, affordable housing, improved mobility, climate resilience, and stronger citizen participation in local governance.

The success of the National Urban Policy will depend on effective implementation. The government has launched the policy, but it remains to be seen whether the necessary investments will be made to address the country's infrastructure deficit. As Ghana's urban population continues to grow, the need for sustainable urbanisation and effective infrastructure development has never been more pressing. The country's future will depend on its ability to address these challenges and create livable, prosperous cities for its citizens.

Source: Joy Online