Ghana's government will begin paying GHS 38 million in outstanding debts to suppliers under the Free Senior High School (Free SHS) programme next week. This action follows mounting concerns over delayed settlements to businesses that provided essential school items.
These payments are to address significant arrears owed for uniforms, house dresses, and other school-related items. The debts date back to 2023. Members of the National Association of Institutional Suppliers (NAIS) staged a protest at the Ministry of Education to demand these overdue funds.
The Free SHS programme is a flagship government initiative. It aims to provide secondary education free of charge to all eligible Ghanaian students. However, persistent delays in payments to suppliers have created financial challenges for many businesses. These businesses depend on government contracts. The situation can affect the wider economy by straining cash flow and potentially jeopardising jobs.
Emmanuel Ayivor, President of the NAIS, confirmed the government's commitment on Citi FM. Education Minister Haruna Iddrisu personally received their petition. The Minister assured them that payments would commence next week. Mr. Ayivor noted that the arrears had been split into three batches. The first batch, valued at approximately GHS 38 million, is ready for disbursement. This specific amount represents a significant portion of the nearly GHS 50 million NAIS members claim they are owed.
The remaining payments are currently being processed through the Ghana Education Trust Fund (GETFund). Officials expect all outstanding debts to be cleared before the end of the month. This commitment offers a glimmer of hope for suppliers. Many have struggled financially, relying on bank loans to fulfill government contracts and experiencing strain on their operations. Businesses have reported struggling to remain solvent while awaiting these state payments.
The payment of these arrears will likely bring immediate relief to the affected suppliers, improving their cash flow. It could also restore some confidence in the government's ability to honor its financial obligations. Analysts will closely watch for the timely disbursement of the remaining tranches. This will demonstrate the government's commitment to supporting local businesses and ensuring the smooth operation of key social programmes like Free SHS. The resolution of these debts is crucial for the stability of businesses supporting the education sector.