Government has unveiled plans to reinstate road tolls to address a considerable funding shortfall in road infrastructure, aiming to generate significant revenue for the sector.
This initiative was revealed by the Minister of Roads and Highways, Francis Asenso-Boakye, during a high-profile panel discussion commemorating the 50th anniversary of the Ghana Highways Authority (GHA).
Mr. Asenso-Boakye emphasized the essential role of road infrastructure in the country’s socio-economic development, pointing out that road transport makes up around 95% of all transportation in Ghana.
“The need for increased funding to the Road Sector is both urgent and evident,” the Minister emphasised, as the nation grapples with a road network where only 44% of roads are in good condition, against a target of 70% by 2025.
Despite notable advancements under the present administration, which claims to have constructed 12,830 kilometers of roads compared to the previous administration’s 4,636 kilometers, the Minister conceded that substantial efforts are still required.
“Government resources alone are insufficient to bridge this gap,” he stated, underscoring the importance of exploring innovative financing models and public-private partnerships.
In light of the Finance Minister’s recent declaration to reintroduce road and bridge tolls in 2025, the Roads Minister stated that the Ministry of Roads and Highways has already initiated steps toward this goal, considering tolling as a viable revenue stream.
Mr. Asenso-Boakye referenced the Korea Expressway Corporation, which generates $4 billion annually from tolls, illustrating the significant revenue potential of such measures.
The Minister also emphasized the need for greater collaboration with private sector partners and international development agencies like the World Bank and the African Development Bank.
These partnerships are crucial for securing additional funds and expertise, necessary for the ambitious road development initiatives Ghana is planning.
As part of these initiatives, the government plans to create a National Roads Authority, merging the country’s three implementing agencies into one unified body.
This new Authority aims to streamline operations, enhance efficiency, and foster a more coordinated approach to road management, ultimately improving infrastructure and maintenance services.
Vice President Dr. Mahamudu Bawumia, the event’s guest speaker, emphasized the crucial role of road infrastructure in national development and reiterated the government’s commitment to addressing the financing gap.
Recent estimates indicate that Ghana needs $12 billion to clear the maintenance backlog and optimize the network of approximately 94,203km. However, current funding levels meet only about 38% of this need, resulting in deteriorating roads, higher maintenance costs, and lost economic opportunities.
The Vice President suggested several policy initiatives to tackle these challenges, including promoting Public-Private Partnerships (PPPs) to access new funding sources and leverage expertise in project implementation.
He added that the government has proactively created a conducive environment for PPPs by streamlining regulatory processes and providing incentives to attract private investment.
Innovative financing models, such as infrastructure bonds, road funds, and toll systems, were also recommended as ways to generate sustainable revenue streams. He affirmed the government’s commitment to expanding these initiatives and exploring new models to boost funding capacity.
The Vice President underscored the importance of improving domestic revenue mobilization. By broadening the tax base and enhancing tax administration, additional funds can be raised for road projects.
This strategy includes collecting property rates in affluent areas and issuing municipal bonds to raise capital.
Finance Minister Dr. Mohammed Amin Adam highlighted that the District Road Improvement Programme (DRIP) and the forthcoming Economic Roads Improvement Initiative will ensure the funding of roads connecting key productivity-enhancing areas such as agricultural zones and tourist sites.
However, he said, despite the government’s best-efforts, public-sector funding and initiatives alone will not bridge this gap.Adding “We believe that the solution lies in making significant room for private-sector participation. Therefore, PPPs offer a critical opportunity for us to close our road financing gap, and we have prioritised working toward streamlining the PPP process.”