Ghana’s failure to effectively track and assess completed projects has led to wasted investments and mounting debt, according to the Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey.
He pointed out that billions of cedis had been borrowed for infrastructure and development projects, yet the expected economic benefits had not materialized due to poor procurement practices and lack of accountability in project execution.
“Funds invested were not efficiently utilised due to lack of competitive bidding and poor procurement practices. Ghana has a weak framework for monitoring and evaluating projects once they’re complete,” he said during his inaugural lecture as a Fellow of the Ghana Academy of Arts and Sciences.
Prof. Quartey cited the Pwalugu Multi-purpose Dam project as a prime example of poor project execution. Although $12 million had been disbursed for the project six years ago, work was yet to begin on the planned 60MW hydroelectric plant and 25,000-hectare irrigation scheme in the Upper East Region. This, he noted, underscores the inefficiencies in Ghana’s project approval and implementation processes.
He further pointed out that Ghana’s debt-to-GDP ratio had risen from 42.9% in 2013 to 82.9% in 2023 before declining to 61.8% in 2024 due to a debt restructuring programme. However, capital expenditure—meant for infrastructure and long-term development—dropped from 6.9% of GDP in 2010 to just 2.4% in 2023, with a minor increase to 2.5% in 2024.
“The lack of a rigorous project approval process, coupled with weak oversight and partisan-driven decisions, has resulted in major delays and poor execution of critical infrastructure,” he explained. He emphasized that without a structured approach to project selection and monitoring, investments in capital projects will continue to yield minimal returns.
To address these challenges, Prof. Quartey, according to a publication by Joynews called for the establishment of a national framework to ensure that borrowing is strictly tied to productive investments. He also recommended a 60% debt ceiling to curb excessive borrowing and enforce fiscal discipline.
He warned that unless Ghana strengthens its project monitoring and evaluation systems, the country risks continuing the cycle of heavy borrowing without meaningful economic growth.
