Ghana requires an estimated US$37 billion annually to address its infrastructure deficit and support sustainable urbanisation, the World Bank has said. This substantial investment is critical as the nation's urban population continues its rapid expansion. The funding aims to close a significant gap identified in the country's infrastructure development.
This need arises from Ghana becoming one of Sub-Saharan Africa's most urbanised countries. Currently, 57% of its population resides in cities and towns. Projections indicate this urban population will more than double by 2050, placing immense pressure on existing infrastructure. Key challenges include widespread flooding, inadequate housing, poor waste management, and severe traffic congestion.
The demand for infrastructure investment is central to Ghana's broader economic and social development. The country's 2019 Infrastructure Plan estimated this staggering US$37 billion annual requirement. This figure is necessary to build infrastructure that supports economic growth and improves the quality of life for its citizens by 2047. Addressing these issues is vital for sustained national progress.
Madhu Raghunath, Urban Resilience and Land Practice Manager at the World Bank, underscored this necessity. She stated that investment in infrastructure, stronger local institutions, and effective implementation of the National Urban Policy are critical. These measures are essential for managing the country's rapid urban growth effectively. Ms. Raghunath made these remarks at the ninth Ghana Urban Forum in Accra.
The implications of failing to meet this infrastructure demand are severe. Accra alone faces estimated flood risk losses exceeding US$20 million annually. This figure is among the highest in Sub-Saharan Africa. The number of people living in slums has also increased significantly, from 5.5 million in 2017 to 8.8 million in 2020. Unmanaged solid waste and traffic congestion contribute to air pollution and climate change, further deteriorating urban living conditions. Most urban households lack access to proper waste services, with 38% using uncontrolled dumpsites and 23% resorting to open burning.
Ms. Raghunath called for integrated investment across various sectors. These include transport, power, waste management, and housing infrastructure. Such investments are crucial for supporting urban development and creating jobs. She also urged the government to strengthen public-private partnerships and municipal financing. Improving local institutions is also vital for better urban planning and service delivery.
Getting urbanisation right is central to Ghana's jobs and productivity agenda. Well-planned cities reduce the cost of doing business. They connect firms to workers and markets. This enables people, especially young people and informal workers, to access services, mobility, skills, and better livelihood opportunities. The National Urban Policy aims to promote inclusive urban development, affordable housing, improved mobility, climate resilience, and stronger citizen participation.
Mr. Ahmed Ibrahim, Minister for Local Government, Chieftaincy and Religious Affairs, affirmed the policy's objective. He stated it is designed to improve living conditions in informal settlements. The policy also aims to prevent the emergence of new slums. He urged Metropolitan, Municipal, and District Assemblies to incorporate the policy into their development plans and budgets. Its success depends on effective implementation at the local level.