Government is considering tapping into domestic pension funds to finance critical road and bridge infrastructure once its ongoing International Monetary Fund (IMF) programme concludes. The proposal is part of a broader strategy to unlock alternative financing sources and reduce dependence on traditional public borrowing.
Minister for Roads and Highways, Kwame Governs Agbodza, confirmed the move during an interview with Bernardino Koku Avle on Accra based Citi 97.3 Fm. He explained that while the idea is gaining traction within government circles, any formal commitments must await Ghana’s exit from the current IMF programme, which restricts new borrowing and financial undertakings.
“The government, through the Finance Ministry, is exploring this. Yes, I know that the pension fund has got very healthy amounts in there. In fact, some of the banks are even coming forward to do things but some of those things can only be done after the IMF [deal].” Mr. Agbodza told Mr Avle.
IMF Constraints Stall Private Offers
According to the Minister, the Ministry of Roads and Highways has received numerous offers from both institutional and private financiers including billion-dollar proposals from firms in Dubai and Turkey but has been unable to act on them due to IMF-imposed restrictions.
“I have a friend in Dubai who says, ‘I have two billion,’ another in Turkey who says, ‘I have three billion,’ I simply say we are under an IMF programme. You would require government commitment, and the government cannot give you one cedi of commitment as long as we remain under this programme.” Mr. Agbodza said.
Road Contracts on the Horizon
Despite current funding limitations, the government is moving forward with its domestic infrastructure rollout. The Roads Ministry has secured commencement certificates and is preparing to sign 31 major road and bridge construction contracts by the end of August 2025. These projects are part of a national push to enhance connectivity and stimulate economic activity.
Procurement processes are currently underway to select contractors for immediate mobilisation. Each contract will include strict performance timelines and enforceable penalties to ensure delivery within a two-year window.
“We’re putting in mechanisms that hold contractors accountable. Delays are no longer going to be absorbed without consequence.” Mr. Agbodza noted.
A Strategic Pivot for Infrastructure Financing
The use of pension funds to support infrastructure development would represent a major shift in Ghana’s public financing model. It echoes strategies used in other emerging markets, where pension capital is leveraged for long-term national development without undermining fund sustainability.
Analysts say that while the move could be transformative, success will hinge on robust governance frameworks, transparent project selection, and strong risk management.
As Ghana navigates its exit from IMF oversight, the outcome of these policy discussions could define the next phase of its infrastructure transformation one potentially financed not by debt, but by the savings of its own citizens.
