Central government should stop dictating district development priorities

I was excited when the Minister of Finance announced in the 2025 budget presentation to Parliament in March 2025 that henceforth Metropolitan, Municipal and District Assemblies (MMDAs) will directly receive at least 80 per cent of the allocation from the District Assemblies Common Fund (DACF).

President Mahama re-echoed that in various public comments.

I was however disappointed when the President and his Cabinet decided to wholly determine how MMDAs should utilise their DACF allocation as announced by the Minister of Finance in Parliament on 3rd June 2025.

The allocation is 25 per cent for design and construction of 24-hour economy model markets; 10 per cen for construction of schools; 10 per cent for sanitation; 10 per cent for health facilities; 10 per cent for provision of water; 10 per cent for provision of school furniture; 10 per cent for environmental sanitation; 10 per cent for provision of school furniture; 20 per cent for completing structures left behind by Middle Belt Development Authority, Coastal Development Authority, and Northern Development Authority as applicable.

This standard allocation gives no regard to the unique circumstances of each MMDA, their development plans and priorities.

I live in the Ga East Municipal Assembly (GEMA) with Abokobi as its capital.

In April 2025, GEMA conducted stakeholder engagements with residents of the municipality on the Development Plan for 2025 – 2028.  

I participated in the meeting for my electoral area. Roads and drainage emerged as our topmost priority.

Other issues were drug abuse by youth, road safety and the absence of speed ramps at points with high pedestrian traffic, and irregular waste collection by Zoomlion.

Most significantly, out of the 83 participants that attended the meeting, there was only one youth.

He was a Minister of the Presbyterian Church where the meeting was held. 

In effect, youth participation at the meeting was zero and their needs were not expressed. 

On page 7 of the Saturday, June 7, 2025 issue of the Daily Graphic, there was a news report of a town hall meeting held in Koforidua on the Municipality’s action plan for 2025.

The theme was ‘’Youth Inclusion in Governance: A key to Achieving Sustainable Development’’.

It was attended by the Municipal Chief Executive, assembly members, chiefs, religious leaders, youth groups, traders, among others.

Participants concerns were perennial flooding, poor drainage, bad roads, non-functioning street lights, jobs, expansion of the Koforidua central market, water, refuse collection, and drug abuse.

Early this year, the Ghana Statistical Service (GSS) published the Ghana 2024 Integrated Business Establishment Survey (IBES 2024). It said there are about 1.9 million business entities (formal and informal) in the country.

The 10 districts at the bottom with the least number of establishments are Adaklu in Volta, Builsa South in Upper East, Mamprugu Moagduri in North East, Birim South in Eastern, North Gonja in Savanah, Banda in Bono, Akrofuom in Ashanti, Daffiama Bussie Issa in Upper West, Akatsi North in Volta, and Sekyere Afram Plains in Ashanti.

These districts have a very low production base with very limited economic and job opportunities for their residents.

What is the point for these MDMAs to utilise 25 per cent of their DACF allocation to construct a 24-hour economy market?

These physical markets will be used once or twice a week on market days. 

Poor feeder roads to communities, and not the absence of physical markets, have been the primary barrier to trade of agricultural inputs and food. That is what needs urgent attention.

We need a complete reset of local government where citizens and residents fully participate in setting their local development agenda, determine spending priorities, eagerly pay their fair share of local taxes and levies, join in the implementation and monitoring of projects, and hold their MMDCEs, Assembly men and women, and Unit Committee members accountable for results.

The government should use the next three and half years till 2028 to deepen citizen and youth participation and confidence in local government.

This will set the stage for electing MMDCEs as Ghanaians have long desired. 
 
The writer is a development economist, chartered accountant and consultant.