Infrastructural challenges will be a thing of the past should Ghana be able to mobilize a little over US$45 billion before 2040.
The country’s socio-economic development path has been described as slow-paced due to the huge critical infrastructural deficit. Ghana lacks critical infrastructure such as good roads, ports, power plants, sewage systems, railways, etc which are needed as a basis for full take-off in its development.
Vice President of IMANI Africa, Bright Simons believes to fully tackle this infrastructure gap requires a significant capital infusion.
Bright Simons believes Ghana stands the chance of turning tides of infrastructural deficit around should the country be able to mobilize US$45 billion in the next 16 years.
“The country’s infrastructure financing deficit alone, till 2040, is more than $45 billion. That’s how much money Ghana needs to build enough roads, ports, power plants, sewage drains, etc,” the IMANI fellow and entrepreneur noted.
However, this cost of bridging Ghana’s infrastructure deficit according to the United Nations (UN) is rather moderate.
The UN believes an estimated amount of US$38 billion can solve this infrastructure by 2047.
Commenting on how such costly projects can be financed, Bright Simons recommended that considering Ghana’s reputation on the international capital market, private investment like the one provided by Deutsche Bank is most appropriate.
Private funding, Bright Simons believes has become the current viable option given Ghana’s inability to maintain confidence among its creditors and investors which has severely undermined the government’s capacity to address these financial difficulties.
According to him, the government’s hands are tied due to international debt challenges hence the solution lies in exciting private financiers such as Deutsche Bank and other global players. These institutions could provide the much-needed capital infusion to plug the infrastructure gap, boosting economic growth and enhancing the quality of life for millions of Ghanaians.
“With the government’s capacity to contribute dwindling, private financiers must now take the lead in Ghana’s infrastructure transformation,” Simons argued.
Other experts believe the consequences of Ghana failing to bridge this gap are potentially dire. Inadequate infrastructure will continue to stifle business growth, limit economic productivity, and make it harder for Ghana to compete on the global stage. The lack of sufficient infrastructure could also hinder social development efforts, leaving the country struggling to provide basic services to its citizens.
The future of Ghana’s development, according to Bright Simons, depends on a strategic shift toward private capital to meet its infrastructure needs. Without it, Ghana’s growth prospects risk being severely curtailed, with ripple effects across the economy and society.
