The government has announced plans to reintroduce road and bridge tolls in a bid to tackle a significant financing gap in road infrastructure, a development which is expected to generate substantial revenue for the sector.
The Minister of Roads and Highways disclosed this proposal during a panel discussion marking the 50th anniversary of the Ghana Highway Authority (GHA).
The Minister emphasized the urgent need for increased funding in the road sector, given that road transport accounts for approximately 95% of all transportation in Ghana. He noted that the current state of the nation’s road network, where only 44% of roads are in good condition, falls short of the 70 percent target set for 2025.
Despite the current administration’s progress in adding 12,830 kilometres of roads, surpassing the previous administration’s 4,636 kilometres, the Minister acknowledged the remaining challenges.
He said government resources alone are insufficient to bridge this gap, underscoring the importance of innovative financing models and public-private partnerships.
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In light of the Finance Minister’s recent announcement to reintroduce road and bridge tolls in 2025, the Roads Minister revealed that steps are already being taken towards this goal. He cited the Korea Expressway Corporation, which generates $4 billion annually from tolls, as an example of the potential revenue such measures could yield.
The Minister also advocated for increased collaboration with private sector partners and international development agencies such as the World Bank and the African Development Bank. These partnerships are considered crucial for securing additional funds and expertise necessary for Ghana’s ambitious road development projects.
As part of these efforts, the government plans to establish a National Roads Authority to consolidate the country’s three implementing agencies into a single entity. This new Authority aims to streamline operations, improve efficiency, and foster a more coordinated approach to road management, thereby enhancing the capacity to deliver better infrastructure and maintenance services.
The Vice President, Dr. Mahamudu Bawumia, the guest speaker at the event, stressed the critical role of road infrastructure in national development and the government’s commitment to addressing the financing shortfall.
He proposed several policy initiatives to address the identified challenges, including fostering Public-Private Partnerships (PPPs) to unlock new funding streams and leverage expertise in project implementation.
The Vice President also emphasized the importance of enhancing domestic revenue mobilization efforts. By broadening the tax base and improving tax administration, additional revenue can be generated to support road projects. This includes collecting property rates in high-income neighborhoods and issuing municipal bonds to raise capital.
On his part, the Finance Minister, Dr. Mohammed Amin Adam, indicated that the District Road Improvement Programme (DRIP) and the upcoming Economic Roads Improvement Initiative, will ensure funding of roads that link pivotal productivity-enhancing ventures such as agricultural enclaves and tourist sites.
However, he acknowledged that public-sector funding and initiatives alone will not bridge this gap, emphasizing the critical role of private-sector participation and PPPs in closing the road financing gap.
