Poor Road Maintenance in Ghana Escalates Transport Costs, Reports World Bank

Accra: Poor Road maintenance is significantly increasing transport costs in Ghana, as highlighted in the World Bank's 10th Ghana Economic Update. Only 58% of road-user-charge collections are being allocated to road maintenance, resulting in a funding shortfall for the country's extensive 94,200-kilometre road network, more than half of which is in fair or poor condition.

According to Ghana Web, inadequate maintenance is a major contributor to the worsening state of the road network, which will ultimately result in higher government expenditures on rehabilitation. Despite hefty spending on new roads and major rehabilitation projects, the maintenance of existing infrastructure remains underfunded. The World Bank emphasizes that the Road Fund currently channels only 58% of road-user-charge collections towards maintenance activities, although consistent funding is essential for preserving the roads.

In Ghana, only about 27% of the road network is paved, with more than half classified as fair or poor. Feeder roads, which form over half of the national network, are in even worse condition, with more than 60% rated fair or poor. This has severe implications for the transportation of agricultural produce, as feeder roads connect many farming communities to markets, processing centers, and major trunk roads. The poor road conditions exacerbate travel times and vehicle operating costs, thus elevating the cost of moving food and other goods.

The report underscores the importance of road maintenance because roads facilitate over 95% of Ghana's passenger and freight traffic, making businesses and households heavily reliant on their condition. The transport sector, accounting for approximately 12.3% of services GDP, is projected to grow by 7.5% in 2024 and an estimated 8.7% in 2025. Meanwhile, the government is ramping up investment in road infrastructure, with about US$2.2 billion earmarked for infrastructure under the 2026 Big Push programme, predominantly for road construction and rehabilitation.

Parliament has also sanctioned GHS3.6 billion for the Road Maintenance Trust Fund for the 2026 fiscal year, including around GHS2.8 billion for road maintenance, rehabilitation, emergency works, and road-safety programs. The Road Maintenance Trust Fund, established under Act 1147, aims to provide a more stable source of funding for the maintenance and rehabilitation of public roads, bridges, and related infrastructure. The World Bank advocates for the full operationalization of this arrangement to enhance the reliability and amount of funding available for maintenance.

The current condition of Ghana's road network highlights the substantial challenges facing the government, with over half of the roads potentially requiring varying degrees of maintenance or improvement. The pressure is particularly intense on feeder roads, where poor conditions can inflate the cost of transporting agricultural products. Regular maintenance is more cost-effective compared to allowing roads to deteriorate to the point of necessitating major reconstruction.

The funding challenges could intensify as the government expands the road network under the Big Push programme since every new road adds to the network that requires subsequent maintenance. The World Bank is urging for strengthened maintenance funding alongside new road investments to prevent existing infrastructure from falling into disrepair while the government invests heavily in network expansion.

If road conditions continue to decline, the economic repercussions will be extensive. Businesses transporting goods between production centers, markets, and ports will face longer travel times, increased fuel consumption, and higher vehicle maintenance costs, thereby elevating the cost of goods transportation across the country. Given that roads support more than 95% of Ghana's passenger and freight traffic, bolstering maintenance funding is crucial for reducing transport costs and maintaining the efficiency of the nation's key trade and distribution routes.