Ghana is currently witnessing a worrying escalation in unpaid government obligations, leaving private firms, contractors, and even critical service‑providers struggling to stay afloat.
When debt becomes a public‑health disaster: The Zipline case
On 25 November 2025, during a heated parliamentary debate over the 2026 Budget, the Ranking Member on the Parliamentary Select Committee on Health, Dr Ayew Afriye, revealed that Zipline, the drone‑based medical logistics company, was shutting down three of its distribution centres because the government owes it GH₵175 million.
He told Parliament: “The allocation for Zipline was only GH₵20 million, even though the government currently owes the company GH₵175 million. Zipline is decommissioning Centres 4, 5 and 6. There has been no meaningful engagement, and the government has failed to release the necessary funds.”
As a result, the company announced the suspension of operations at its hubs in Sefwi Wiawso (Western North Region), Krachi (Volta Region), and Anum (Eastern Region), effective from 25 November 2025.
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These centres have historically been critical delivery nodes, supplying life‑saving blood products, vaccines, anti‑snake venom, and essential medicines to remote and underserved communities across Ghana. The partial shutdown, therefore, threatens to sever an aerial lifeline and set back gains in rural healthcare delivery.
Since its launch in April 2019, Zipline has been hailed as a transformative public‑private partnership, enabling rapid, last‑mile medical deliveries across difficult terrain. But with the government’s funding shortfall now reaching GH₵175 million, that progress is under threat.
Ghana’s mounting state debts: The broader picture
In his 2025 State of the Nation Address, John Dramani Mahama disclosed that Ghana’s total public debt had ballooned to GH₵721 billion. He also put the debt of the national utility Electricity Company of Ghana (ECG) at GH₵68 billion, and that of the Ghana Cocoa Board (COCOBOD) at GH₵32.5 billion, with portions of these amounts due for repayment by September 2025.
Moreover, during the presentation of the 2025 national budget, the Minister of Finance, Cassiel Ato Forson, revealed that the government owed government contractors and suppliers GH₵67.5 billion in accumulated arrears, a figure drawn from validated claims submitted by Ministries, Departments and Agencies (MDAs).
According to his breakdown, this includes GH₵49.2 billion in outstanding interim payment invoices and GH₵18.3 billion in bank transfer advice to the Controller and Accountant General’s Department.
As part of efforts to address these crippling liabilities, the 2025 Budget allocated only GH₵13 billion to begin clearing verified contractor claims. But despite this, many sectors continue to feel the pinch, including public‑service providers whose operations hinge on timely payments.
A broader pattern: How state debts are impeding business and public‑service delivery
The Zipline predicament is part of a larger trend. Across sectors, the accumulation of arrears, to contractors, suppliers, and utility firms, has eroded trust, stalled projects, and crippled operations:
- The “GH₵67.5 billion owed contractors and suppliers” represents a backlog of payment obligations that cuts across road works, infrastructure projects, and other government contracts.
- The heavy indebtedness of state‑owned enterprises like ECG and COCOBOD, amounting to tens of billions of cedis, further complicates efforts to sustain public services such as electricity supply and cocoa export logistics.
- Even where partial settlements have been made, the pace remains slow. For example, a payment of GH₵5 billion to road contractors in October 2025 was lauded as “the largest single settlement to contractors by any government in recent history,” but the outstanding backlog is estimated at around GH₵40 billion, much of it still unaddressed.
What emerges is a worrying pattern: delayed payments, accumulated arrears, and piecemeal settlements, a toxic mix that undermines both public‑private partnerships and the viability of businesses that depend on state contracts or procurements.
The human cost: Lives, livelihoods, and lost progress
For firms like Zipline, the unpaid GH₵175 million is more than a balance‑sheet issue. It translates into grounded drones, suspended deliveries, and a disrupted supply chain, with real consequences for patients in remote areas. What was once a celebrated innovation in Ghana’s healthcare delivery now risks becoming another casualty of fiscal mismanagement.
For contractors and suppliers across sectors, long payment delays often mean cash‑flow problems, layoffs, stalled projects, and even business closures. For the average Ghanaian taxpayer, the effects are felt in poorer public services, slowed infrastructure development, and diminished trust in state competence.
