Accra: The Government has taken a decisive step to modernise public financial management with the signing of a Service Level Agreement (SLA). The agreement aims to integrate the Ghana Interbank Payment and Settlement System (GHIPSS), the Ghana Integrated Financial Management Information System (GIFMIS), and the Electronic Funds Transfer (EFT) platform, making electronic payments compulsory for all public sector entities.
According to Ghana News Agency, the agreement, signed on Tuesday, establishes the GHIPSS platform as the sole authorised channel for payments by Covered Entities, marking a definitive shift away from manual cheque systems. These entities include Ministries, Departments, and Agencies (MDAs) as well as Metropolitan, Municipal, and District Assemblies (MMDAs).
Speaking at the signing ceremony in Accra, the Controller and Accountant-General, Mr Kwasi Agyei, described the move as a fundamental shift in the handling of public funds. He noted that the public sector had relied on slow, difficult-to-reconcile manual cheque systems that were prone to inefficiencies and misuse.
Mr Agyei explained that through collaboration between the Corporate Responsibility Unit and the Accountant-General's Department, a secure, efficient, and fully interoperable electronic funds transfer system had been created. This system will manage how Covered Entities make payments to suppliers and third parties across the banking sector.
He emphasised that electronic funds transfer is now compulsory, offering speed, transparency, auditability, and reduced leakages and corruption. While the shift away from manual cheques will be gradual, it will be firmly enforced, with the Government providing clear guidelines, structured training, and effective change management to support the transition.
Mr Thomas Ampem Nyarko, the Deputy Minister of Finance, underscored the Government's commitment to fiscal discipline, noting that the reform rests on three key pillars: accountability, efficiency, and control. He explained that digital payment systems create auditable footprints that strengthen oversight and safeguard public funds.
Mr Nyarko provided a timeline for the rollout, explaining that the process would follow a strict schedule. Agencies will be rolled out gradually, with manual cheques being automatically withdrawn. He also announced the Finance Minister's intention to declare, in the next budget presentation, that all manual cheques would be withdrawn, with Government payments fully digitised by the end of the year.
Mr Aggrey Darko, the Head of Civil Service, described the reform as a critical step towards improving governance and public sector efficiency. He called on public sector workers to comply with the new system, describing it as a "safety valve" to promote responsible financial management.
The reform integrates GIFMIS with the GHIPSS platform, enabling end-to-end electronic payments. It builds on recent amendments to the Public Financial Management Act, which introduced commitment controls requiring MDAs to obtain approval from the Finance Minister before committing the state to expenditure. Mr Darko noted that such mechanisms are necessary to ensure accountability and emphasised that institutional controls are essential in public financial management.