Ghana’s roads set for major turnaround as government decaps Road Fund

For years, Ghana’s roads have been in crisis—riddled with potholes, plagued by endless congestion, and marked by deteriorating highways that have made travel a nightmare for motorists and commuters alike. But now, a major policy shift is set to change the game.

In a landmark decision, the government has announced the de-capping of the Ghana Road Fund, a move that is being hailed as a potential turning point for the nation’s road infrastructure. Presented in the 2025 Budget Statement to Parliament, this decision means that the full revenue generated for road maintenance will finally be used for its intended purpose, rather than being siphoned into the government’s Consolidated Fund.

The move comes with a GH¢2.81 billion budget allocation for road maintenance in 2025, signaling a renewed commitment to fixing Ghana’s deteriorating road network. Given that Ghana’s road density stands at 32.8 kilometers per 100 square kilometers—nearly double the African regional average—ensuring proper upkeep is vital for national development.

The news has been met with widespread approval across the transport and construction sectors, with stakeholders calling it “long-overdue relief” for Ghana’s struggling road network.

A fund that was handcuffed

The Ghana Road Fund was originally established by Parliament to provide a steady stream of funding for road maintenance. Its revenue—collected through fuel levies, vehicle registration fees, road tolls, and transit charges—was meant to ensure the country’s roads remained in good condition.

But over the years, a large portion of this fund was redirected to other government expenditures, leaving road contractors unpaid, road maintenance projects abandoned, and travelers enduring deteriorating highways.

The consequences have been severe:

✔️ Unfinished road projects that stalled due to lack of funds
✔️ A surge in road accidents linked to poor infrastructure
✔️ Increased vehicle maintenance costs for drivers navigating crumbling roads
✔️ Loss of productivity due to prolonged travel times

The financial impact of neglected infrastructure is immense. Studies show that poor road conditions can increase transport costs by up to 40%, negatively affecting trade, tourism, and general economic activity. Farmers and businesses bear the brunt of this, struggling to get goods to market efficiently.

For years, industry leaders, contractors, and transport operators have pleaded for the government to de-cap the fund and allow all collected revenue to go toward road maintenance.

Now, that plea has finally been answered.

What does the de-capping mean for Ghana’s roads?

With full access to the Road Fund, the government can now prioritize road maintenance and rehabilitation, ushering in significant improvements that will be felt across the country.

It is expected that road maintenance agencies will now have the full budget to carry out critical repairs. This means:

Ghana’s infrastructure backlog is extensive, and the government estimates that $473 million may be needed to repair climate change-related damage to roads by 2100. Addressing these challenges now is crucial to preventing even higher costs in the future.

2. Safer Roads, Fewer Accidents

Poor road conditions have contributed to a rise in fatal accidents. Now, with proper maintenance, the risk of crashes caused by bad roads will decrease significantly, making travel safer for all.

In Ghana, an alarming number of accidents occur due to poor road conditions, with potholes and weak bridges playing a major role in road fatalities. Experts believe that targeted maintenance could reduce road accident-related deaths by up to 30%.

3. A Boost for the Construction Industry

For years, road contractors have suffered delayed payments due to insufficient funds. But with more money flowing into road projects, the construction sector is set to experience a major revival.

✔️ More contracts awarded to local construction firms
✔️ Timely payments for completed projects
✔️ Job creation for engineers, laborers, and supply chain workers

The Ghana Chamber of Construction Industry (GCCI) is particularly optimistic that this will restore confidence in the sector and ensure contractors no longer face long waits for their dues.

4. Economic Growth and Trade Expansion

A well-maintained road network is essential for commerce, tourism, and industrial development. With better roads:

✔️ Farmers will transport goods faster and at lower costs
✔️ Businesses will reduce transportation expenses
✔️ Tourism will receive a boost with improved access to key destinations

In simple terms, better roads mean a stronger economy. Studies on infrastructure in sub-Saharan Africa have shown that improved road networks can boost GDP by as much as 2 per cent annually, underscoring the economic potential of this policy shift.

5. Restoring Public Confidence in Infrastructure Management

For too long, Ghanaians have watched as road funds disappeared into bureaucratic black holes while the roads worsened. This move signals a renewed commitment to infrastructure.

However, the government must ensure transparency and accountability in how the funds are used. There must be:

 • Strict monitoring and tracking of spending
 • Annual reports on fund allocation and usage
 • Zero tolerance for mismanagement and corruption

Will this be a true game-changer?

The de-capping of the Ghana Road Fund is a victory, but its success will depend on implementation, oversight, and efficiency. The worst-case scenario would be a return to mismanagement, where funds are misused and road conditions remain unchanged.

The Ghana Chamber of Construction Industry is committed to ensuring the success of this policy. The Chamber will closely monitor developments and work alongside the government to guarantee that the fund achieves its intended impact—better roads, fair payments to contractors, and a thriving construction industry.

For now, one thing is clear: the wheels of change have started turning. The question is—will Ghana stay on course, or will we hit another pothole?

Only time will tell. But for the first time in years, Ghanaians can look forward to smoother roads ahead.

The author Naa Lamiley Bentil is the General Secretary, Ghana Chamber of Construction Industry.