The Government of Ghana has discontinued approximately 1,800 public investment projects after a nationwide assessment of its development portfolio, as part of ongoing reforms aimed at strengthening fiscal management and improving the effectiveness of public expenditure, the International Monetary Fund (IMF) has revealed.
The disclosure was contained in the IMF’s latest Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, which highlighted measures being undertaken to restore macroeconomic stability and enhance the country’s public financial management framework.
According to the report, the review examined thousands of state-funded projects to determine their viability, strategic relevance and affordability.
As a result, initiatives deemed impractical, underperforming or inconsistent with current national priorities were removed from the government’s investment pipeline.
In addition to the cancelled projects, nearly 2,000 others have been redesigned or had their implementation timelines adjusted to correspond with available funding and the state’s execution capacity.
The IMF explained that the exercise is intended to ensure that limited financial resources are directed toward programmes capable of delivering stronger economic returns and greater social impact.
The Fund stated that the restructuring of the investment portfolio is designed to improve the overall quality of capital projects while ensuring spending plans remain consistent with Ghana’s fiscal position and institutional capacity.
The review forms part of broader reforms introduced after Ghana’s debt restructuring programme to reinforce expenditure management, tighten financial controls and promote sustainable public finances.
Beyond the investment review, the government is pursuing additional measures to strengthen procurement systems, improve commitment controls and enhance oversight of public expenditure to minimise the accumulation of payment arrears and ensure more effective budget implementation.
According to the IMF, these initiatives are expected to create additional fiscal space for essential infrastructure and priority development programmes under the proposed Policy Coordination Instrument.
The Fund added that the reforms also support wider efforts to improve governance standards, reinforce public financial management systems and preserve long-term debt sustainability as Ghana continues its economic recovery programme.
By: Magdalene Agyeiwaa Sarpong