Ghana's government has allocated GHS 300 million from the Contingency Fund to address recent devastating floods in Accra. President John Dramani Mahama directed the release, allocating GHS 150 million for emergency relief and GHS 150 million for mitigation efforts.
Hours later, the Minister for the Interior announced a different figure in Parliament, stating GHS 350 million. This amount included GHS 200 million for relief and GHS 150 million for flood control. The discrepancy in these figures has prompted questions regarding the basis for these allocations following extensive flooding on Tuesday, June 30.
This reliance on emergency funding for floods is a recurring pattern in Ghana's public financial management. Flooding has become a predictable event, particularly in Accra, due to drainage issues, rapid urbanisation, and changing climate patterns. Ghana's Public Financial Management Act, 2016 (Act 921) permits Contingency Fund advances only for unforeseen and urgent needs. However, June 2026 recorded Ghana's highest monthly rainfall in history, making floods less an 'unforeseen' event.
Rachel Gyabaah, a writer for MyJoyOnline News, noted that the President's quick response was commendable. She also emphasised the need to address broader public financial management questions. Gyabaah asked whether these allocations were part of an established framework or determined as the disaster unfolded. She also questioned the basis for the amount, such as damage assessments or historical expenditure.
The National Disaster Management Organisation (NADMO) supported 173,800 disaster victims in 2025, significantly exceeding its planning target. NADMO also dredged 255 drains for flood mitigation. The 2026 budget allocated NADMO GHS 409.4 million, with 96.6 percent for employee compensation. Only GHS 14 million was specifically for climate-related hazard resilience, with GHS 8.3 million for emergency works. This contrasts sharply with the GHS 300-350 million released through the Contingency Fund.
This situation highlights the need for Ghana's budgeting systems to shift from reactive disaster response to proactive preparation. Discussions at COP28 in Dubai emphasized this shift from post-disaster humanitarian aid to pre-disaster climate risk financing. International recognition is growing for mechanisms that release funds based on agreed climate thresholds.
Ghana has made some progress in this area. The 2026 Budget Statement confirmed sovereign drought insurance through the African Risk Capacity. This insurance protects vulnerable farmers during the 2025/2026 farming season. Plans are also in place to introduce a Parametric Flood Insurance Scheme for the Greater Accra Metropolitan Area. This scheme aims to provide rapid support to approximately 1.2 million vulnerable residents. These anticipatory financing efforts represent crucial steps towards increased climate adaptation.