Vice President Urges Innovative Financing Solutions for Road Infrastructure

Aug-8- Vice President Mahamudu Bawumia has called on stakeholders in Ghana’s road infrastructure sector to explore innovative financing methods to address the significant funding gap in road construction. Speaking at the 50th Anniversary of the Ghana Highway Authority and a high-level expert panel discussion in Accra, Bawumia emphasized the need for new approaches to close the substantial financing gap impacting road development.

The event, themed “Closing the Financing Gap on Road Infrastructure Development in Ghana,” brought together key figures including road contractors, engineers, financial institutions, and procurement officers. They engaged in discussions about the challenges and opportunities in the road sector and proposed strategies to move forward.

Bawumia highlighted the critical role of road transport in Ghana, noting that it is essential for both passenger and freight movement. He pointed out that the country’s road network, which spans over 94,000 kilometers, is facing a significant maintenance backlog. Current funding only addresses about 38% of the required amount, leaving a $12 billion shortfall. This gap has led to deteriorating road conditions, higher maintenance costs, and lost economic potential.

Globally, the financing challenge is not unique to Ghana. The African Development Bank has reported an annual continental infrastructure financing gap between $68 billion and $108 billion. This massive shortfall underscores the need for innovative solutions and strategic collaborations.

Dr. Bawumia advocated for public-private partnerships (PPPs) as a promising solution. He noted that successful PPPs worldwide have demonstrated their ability to deliver infrastructure projects efficiently and within budget. To enhance these partnerships, he suggested building strong relationships with construction firms, engineering companies, and technology innovators who can provide both financial and technical support.

He also encouraged the exploration of new financing models such as Infrastructure and Municipal bonds and suggested reforming the tolling system to ensure fairness. Bawumia emphasized the necessity of creating sustainable revenue streams for road development and maintenance.

Among the innovative financing options proposed were the concession of high-volume roads, such as major trunk routes and new expressways around urban centers, and congestion pricing, which would limit access for low-capacity vehicles to reduce traffic and promote high-occupancy vehicles.

One of Bawumia’s more controversial proposals was a radical reform of the road tolling system. He criticized the current system for being inequitable, suggesting that it disproportionately affects lower-income individuals while affluent areas benefit from better roads without similar toll burdens. To address this disparity, he proposed implementing a universal toll on all road users, regardless of their residence, to ensure a fairer distribution of the financial responsibility for road maintenance.

Bawumia’s call to action aims to stimulate discussion and prompt significant changes in how road infrastructure is financed in Ghana. By leveraging innovative solutions and fostering strong public-private partnerships, he hopes to bridge the financing gap and improve the quality and sustainability of the country’s road network.