Government is seeking external financing to ease mounting pressure on urban transport systems, with a proposed €1 million grant from Spain expected to support the expansion of the state-run Ayalolo bus fleet.
The Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, said the funding is being pursued through the Spanish Embassy and would be used to add buses to the Ayalolo network, which serves major routes in Accra. The grant is expected to be finalized once the Ministry of Finance issues a letter of no objection.
Speaking at a meeting with Vice President Jane Opoku-Agyemang and transport operators, Ibrahim said years of underinvestment have contributed to the current congestion and service shortfalls in urban public transport. He said Ayalolo has not added to its fleet since receiving 200 buses in 2014, despite rising demand in the capital.
“In 2014 to 2015, His Excellency the President of the Republic, President Mahama, also continued with the establishment of Aayalolo buses and also augmented the “Kufuor” buses. And that has been the trend. But for the past 10 years, there has not been retooling in all of these unions, and that’s why the problem is happening,” Ibrahim said.
According to him, the lack of fleet expansion prompted changes in management at Ayalolo after it emerged that none of the original 200 buses had been replaced or supplemented. “When I assumed office as Minister responsible for Local Government, I called the Ayalolo boss and asked, ‘We gave you 200 buses in 2014. How many have you added?’ He said, ‘Zero.’ I then asked why he should continue in office. If all 200 buses are depreciating and none have been added, then step aside. A new boss came in,” he said.
He noted that the new management subsequently approached the Spanish Embassy for support. “When the new boss came in and realised the problem, he went to the Spanish Embassy. They wanted to give us a grant; all that was needed was a letter of no objection from the Minister for Finance. With your presence, I believe it will be granted,” he said. “The current MD of Ayalolo will receive €1 million to augment the fleet. The Spanish ambassador has been following up, and we need that support.”
The Vice President’s engagement with transport sector stakeholders comes amid growing public frustration over worsening commuting conditions in Accra, including long waiting times during peak hours, higher transport fares and a shortage of commercial vehicles, particularly in the mornings and evenings.
The government has signaled that expanding the Ayalolo fleet forms part of broader efforts to stabilize public transport services in the Greater Accra Region, as urbanization and population growth continue to strain existing infrastructure.