President John Dramani Mahama says his administration will introduce legislation to ban sole-source procurement in most cases, part of a broader effort to tighten public financial controls after what he described as years of fiscal indiscipline.
Addressing Parliament in his State of the Nation speech ahead of the 69th Independence Day, Mahama said the government would only permit sole-source contracts under “exceptional circumstances,” signalling a shift toward more competitive tendering in public procurement.
The proposed reform forms part of a wider governance agenda aimed at restoring public trust and reducing waste in state spending. Ghana has in recent years faced criticism over inflated contracts, cost overruns and abandoned projects, issues that weighed on public finances during a period of debt distress and macroeconomic instability.
Mahama framed the procurement overhaul as a corrective measure designed to prevent a recurrence of past excesses. “We are bringing legislation to this House to tighten our procurement processes by banning sole-source contracts, except in exceptional circumstances,” he said.
The move could have significant implications for contractors and investors involved in infrastructure, energy and public service projects, where sole-sourcing has often been justified on grounds of urgency or technical specificity. A shift toward competitive tendering may widen participation but could also lengthen procurement timelines.
The planned bill comes alongside other institutional reforms, including the introduction of a Value for Money Office Bill intended to curb inflated pricing and ensure stricter oversight of public contracts. Mahama also said the government would seek parliamentary approval before any state asset or property is leased or sold, including land and state enterprises.
The procurement changes are part of what the president calls the “Resetting Ghana Agenda,” a program aimed at consolidating fiscal gains after debt restructuring, reducing inflation and stabilizing the currency. For businesses, the proposed ban signals a more rules-based contracting environment, though its practical impact will depend on how narrowly “exceptional circumstances” are defined once the legislation is drafted and debated.
