Ghana’s decision to reintroduce road tolls, now with a digitized collection system, is set to revive private sector interest in infrastructure development, reversing the impact of the 2021 toll removal.
Investment banker and Chief Executive Officer (CEO) of investment advisory firm ,C-NERGY Ghana Limited, Michael Cobblah, had in 2021 criticized the elimination of tolls, warning that it discouraged Public-Private Partnerships (PPPs) in road infrastructure, a model widely used globally to finance and maintain transport networks.
The firm proposed the reinstatement of roll tolls in the form of an efficient e-pass system for all high traffic major connector roads. To address the fairness charge, free access public roads will remain an option at each toll point to allow drivers to choose between paying extra money to save travel time and continuing to travel free on more congested public roads.
The new technology-driven tolling system is set to enhance efficiency, transparency, and accountability, addressing past issues of congestion and revenue leakages associated with manual toll collection. The move signals a renewed commitment to attracting private investment into Ghana’s road sector while ensuring sustainable financing for infrastructure development.
Rebuilding Investor Confidence in PPPs
The removal of road tolls in 2021 created uncertainty among potential investors in Ghana’s infrastructure space, particularly in PPP-driven projects. This was seen as a contradiction to the country’s PPP Law, which was designed to encourage private sector participation in critical infrastructure projects.
C-NERGY made the point at the time that “the total removal of road tolls is a step in the wrong direction as it signals to the private sector and the PPP investment community that Ghana is effectively disincentivizing their participation in road infrastructure development, which is globally funded with such levies. It is problematic that we would choose this route when we have recently passed a PPP Law to court private sector participation in infrastructure development.”
It observed that many urban centers across Africa, including Accra, faced challenges of worsening traffic congestion and limited public funds for road construction. In response, an increasing number of cities had embraced private toll roads as a solution, following global best practices where private toll roads have successfully accelerated infrastructure development.
Across Europe, major highways in France, Italy, and Spain had long been developed and maintained through PPP models, ensuring faster construction, greater transparency, and cost-effective road management.
Ghana’s reintroduction of tolls, combined with a commitment to digitization, could position the country as a regional leader in leveraging private sector expertise for infrastructure development.
A Smarter Approach to Tolling
The government is exploring new tolling models that go beyond flat-rate pricing. One such model includes time-based tolls, where fees vary depending on peak and off-peak hours, effectively managing traffic congestion. Additionally, ensuring alternative free-access roads alongside tolled routes will give road users the choice between paying for faster travel or using a more congested public road.
By integrating an efficient digital tolling system with a structured PPP framework, Ghana can restore investor confidence while generating sustainable revenue for road expansion and maintenance. The success of this initiative, however, will depend on transparent procurement, competitive bidding, and ensuring that toll rates are fair and reflective of infrastructure costs.
The digitized tolling system presents a fresh opportunity for Ghana to not only strengthen its road infrastructure but also reestablish itself as an attractive destination for private infrastructure investment, ultimately improving trade, mobility, and economic productivity.
