Ghana’s road maintenance funding gap deepens, World Bank warns
Ghana is facing a growing shortfall in funding for road maintenance, with available resources meeting just 37% of the country’s estimated maintenance requirements in 2024, according to the World Bank.
The figure represents a decline from the 45% coverage recorded between 2018 and 2021, highlighting persistent funding challenges that are contributing to the deterioration of the country’s road infrastructure.
The World Bank made the assessment in its latest Ghana Economic Update, titled “Reset for Growth – Sustaining Macroeconomic Recovery and Unlocking Transport for Transformation.”
According to the report, inadequate maintenance is not only accelerating the deterioration of roads but also reducing the economic benefits expected from investments in transport infrastructure.
$685 Million Needed Annually
The World Bank estimates that Ghana’s trunk road network has a replacement value of approximately US$10 billion and requires about US$685 million every year to maintain it adequately.
That amount represents roughly 0.83% of Ghana’s Gross Domestic Product (GDP).
However, funding available to the road sector has consistently fallen well below the required level, making the financing deficit a structural problem for the country’s transport infrastructure.
The report attributed part of the decline in maintenance funding to the implementation of the Earmarked Funds Capping and Realignment Act, which contributed to the reduction in the proportion of maintenance needs being financed.
Road Fund Resources Under Pressure
The World Bank also identified weaknesses in the management and transfer of Road Fund resources as another factor contributing to the funding crisis.
Between 2016 and 2020, only about 58% of road user charge revenues accrued were transferred to approved road maintenance budgets, with the remaining funds redirected to other areas of the national budget.
The situation remained challenging between 2018 and 2021, when Road Fund revenues covered just 45% of actual maintenance requirements, well below the government’s target of 65%.
The report further indicated that only 50% to 60% of budgeted Road Fund allocations were released in 2022 and 2023.
By the end of 2024, accumulated arrears had reportedly reached approximately GH¢5.75 billion, placing additional pressure on the road maintenance system.
Delayed Maintenance Comes at a Higher Cost
The World Bank cautioned that postponing routine road maintenance can significantly increase the cost of preserving the network.
Roads that are allowed to deteriorate into poor condition may require rehabilitation costing five to seven times more than what would have been spent on preventive maintenance.
The impact of inadequate funding is already visible across Ghana’s road network.
By the end of 2025, the country’s estimated 94,000-kilometre road network had only 47% of roads classified as being in good condition. A further 32% were rated fair, while 21% were considered poor.
The condition of key categories of roads also remains a concern. Earlier assessments showed that only 35% of trunk roads were in good condition, while 64% of urban roads and 65% of feeder roads were classified as either fair or poor.
These figures fell short of the government’s 2021–2025 target of achieving 60% of roads in good condition.
Poor Roads Affect Agriculture and Rural Communities
The World Bank warned that the consequences of inadequate maintenance extend beyond transport infrastructure.
Poor road conditions can disproportionately affect communities in less-developed regions by limiting access to markets and increasing transportation costs.
The impact is particularly significant for farmers who depend on feeder roads to move agricultural produce from production areas to commercial centres.
According to the report, routine maintenance of feeder roads has achieved an average rate of only 45%, compared with the government’s target of 65%.
During the rainy season, deteriorating roads can further increase transportation difficulties and contribute to higher farm-gate prices.
Road Investment Returns at Risk
The funding deficit is also threatening the economic returns expected from major investments in Ghana’s transport infrastructure.
The World Bank cited the Second Transport Rehabilitation Project as an example.
The project recorded an economic rate of return of 38% at the appraisal stage, but this dropped to 16% by completion.
The report identified inadequate maintenance as one of the major factors contributing to the sharp decline.
The World Bank’s assessment therefore underscores the need for Ghana to establish a more reliable and sustainable financing mechanism for road maintenance to protect existing infrastructure, reduce future rehabilitation costs and preserve the economic benefits of investments already made.