WaterAid Ghana has conducted a detailed examination of Ghana’s 2024 budget, revealing a concerning 68% reduction in the allocation for the Ministry of Sanitation and Water Resources (MSWR) compared to the previous year. The total budget for MSWR has sharply declined from GHs 1,847,454,545 in 2023 to a mere GH 591,052,380 in 2024.
This substantial reduction is primarily attributed to a staggering 76% decrease in funding from Development Partners (DPs), overshadowing a modest 10% increase in the government’s contribution. The significant drop in DP contributions underscores a heavy dependence on external funding, with DPs constituting 68% of the total sector budget.
The implications are dire, especially as 83% of capital expenditure (CAPEX) within the sector relies on DPs. WaterAid Ghana expresses deep concern over the potential impact on fundraising capabilities and emphasizes that achieving Sustainable Development Goal (SDG) targets for Water, Sanitation, and Hygiene (WASH) by 2030 now appears increasingly challenging.
The analysis also highlights historical challenges, including lackluster fund releases for WASH programs, particularly from the Government of Ghana. Despite marked successes in compensating employees, other aspects of the sector face financial constraints.
In the broader context of the 2024 budget, WASH is allocated a mere 0.8% of the total budget for flagship programs, with Road Infrastructure and Education receiving a disproportionate 38% and 45%, respectively.
Situating the analysis within the recently launched Ghana Water Supply, Sanitation, and Hygiene Sector Development Programme (GWASHSDP) raises further concerns about Ghana’s ability to achieve SDG targets for WASH by 2030.
The estimated annual cost of US$1.7 billion, covering critical areas such as water resources management, urban and rural water supply, sanitation, hygiene, and institutional development, underscores the financial magnitude required for success. There is a notable variance between the budgetary allocations for WASH in the 2024 budget and the estimated annual cost of WASH investments in the GWASHSDP.
WaterAid Ghana emphasizes that such inadequate allocation is not commensurate with the sector’s importance, raising doubts about the nation’s commitment to achieving international goals. Despite Ghana crossing the GHS1 trillion budgetary mark, only 0.06% of the Gross Domestic Product (GDP) is allocated for WASH initiatives, significantly below international commitments.
WaterAid Ghana calls for immediate action on several fronts:
1. Urgent Funding Increase: WaterAid Ghana urges the government to augment funding for WASH under the MSWR, aligning it with policy aspirations, targets, and the SDG6 target.
2. Transparent SPL Management: Advocacy for the development of a clear framework to manage the Sanitation and Pollution Levy (SPL) and calls for transparency in inflows and disbursements.
3. Accelerated Sector Reforms: Emphasis on the need to expedite ongoing WASH sector reforms, including the Community Water and Sanitation Agency reforms, new water policy implementation, Environment and Sanitation Policy review, and the establishment of the National Sanitation Authority with its accompanying sanitation fund.
4. Equal Priority for WASH: Advocacy for WASH to receive equal priority as Road Infrastructure and Education within the flagship programmes.
5. Increased Sector Funding: A call for the government to amplify investment in sanitation at household and school levels, aligning it with international commitments for the WASH sector.
WaterAid Ghana cautions that if these issues are not resolved quickly, there may be dire consequences and Ghana’s progress toward accomplishing important SDGs related to WASH may be compromised. The urgent need to refocus attention and funds on maintaining and growing Ghana’s WASH sector is highlighted by the call to action.