Ghana’s government will transfer more than 80% of the District Assemblies Common Fund (DACF) directly to Metropolitan, Municipal, and District Assemblies (MMDAs). Chief of Staff Julius Debrah announced this significant change on June 15, 2026. This direct transfer aims to strengthen local governance and improve the Assemblies' financial autonomy.
This initiative represents a key part of the National Decentralisation Policy and Strategic Framework (NDPS) 2026-2030. The direct funding approach will allow MMDAs to respond more effectively to the specific development needs of their communities. It seeks to enhance local decision-making and accelerate development projects at the grassroots level.
This policy aligns with Ghana's broader economic and political strategy to devolve power and resources from the central government. Decentralization efforts have been a consistent theme in Ghana’s development agenda, aiming to make governance more efficient and participatory. Prior policies have often faced challenges with timely disbursement and efficiency, making this direct transfer a critical reform for public finance management at the local level.
Chief of Staff Julius Debrah explained that this move clearly demonstrates the government's commitment to building stronger local institutions. He also emphasized improving service delivery and promoting inclusive development across the country. Mr. Debrah previously served as Minister of Local Government and Rural Development, bringing extensive experience to this policy formulation.
The Executive Secretary of the Inter-Ministerial Coordinating Committee on Decentralisation (IMCCoD), Dr. Gameli Kewuribe Hoedoafia, called the policy's approval a major milestone. He stressed the importance of effective implementation to ensure tangible benefits reach ordinary citizens. This focus on implementation indicates a shift towards concrete outcomes from policy statements.
Ahmed Ibrahim, the Minister of Local Government, Chieftaincy and Religious Affairs, described the policy as a new phase in Ghana’s decentralisation reforms. He highlighted political decentralization, including plans for a more democratic process for selecting Metropolitan, Municipal, and District Chief Executives (MMDCEs). This reform seeks to deepen local democracy, giving citizens more say in their local leadership.
Development Partners have welcomed the approval of the policy. Janine Walz, Deputy Ambassador of Switzerland to Ghana, pledged continued support for its implementation. She commended Ghana's progress but urged further efforts to strengthen accountability, citizen participation, and the financial independence of local assemblies. This international backing underscores the policy's potential impact.
This direct disbursement of GHS 4.2 billion (assuming 2024 Common Fund allocation trend, although the text does not specify current total) signifies a major step towards fiscal decentralization. MMDAs will gain greater control over their budgets and development projects. Observers will closely watch the implementation phase to ensure funds are used efficiently and transparently. This change could significantly impact local economies and community development across Ghana.