Government Launches Ambitious Decentralization Drive with GH¢5 Billion Local Assembly Funding and Infrastructure Surge

21st April•3 min read•44 sources

The Government of Ghana has announced a landmark investment in local governance, spearheaded by an unprecedented release of GH¢5 billion to Metropolitan, Municipal, and District Assemblies (MMDAs) for the 2025 fiscal year. Minister of Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, confirmed that 80% of the District Assemblies Common Fund (DACF) will now be transferred directly to local authorities to accelerate grassroots development. This funding shift is designed to address what the current administration describes as a legacy of dysfunctional governance, prioritizing the completion of hundreds of CHPS compounds, classroom blocks, and thousands of legacy projects across the country's 261 districts.

Central to this developmental agenda is the rollout of the '24-Hour Economy Model Markets,' a flagship initiative intended to stimulate local trade and agricultural linkages. President John Dramani Mahama has already commenced sod-cutting for these facilities in Northern Ghana, with the ministry issuing stern warnings to contractors against shoddy workmanship or delays. To further strengthen local governance, the government has tripled the monthly allowances for paramount chiefs and queen mothers from GH¢1,000 to GH¢3,000, acknowledging their pivotal role in community stability. Simultaneously, the Ghana Education Service (GES) has moved to stabilize the academic sector by releasing critical funds for the School Feeding Programme and approving the payment of salary arrears for newly recruited teachers.

Broad social interventions are also being scaled up, including the launch of a Free Primary Healthcare Policy targeting 150 districts to improve equity for those outside the National Health Insurance Scheme (NHIS). In the energy sector, an initiative to install 2,500 high-capacity transformers is underway to stabilize the national power grid and meet the demands of a growing population. These infrastructure gains are being complemented by legislative efforts, such as the upcoming University of Governance and Development Bill, which aims to formalize training for local government officials in Madina, Akumadan, and Tamale.

Despite these advancements, the government faces calls for deeper structural reforms. Anti-corruption crusaders and civil society organizations, including CDD-Ghana, are advocating for the decentralization of presidential powers and the provision of dedicated operational budgets for unit committees and area councils. These stakeholders argue that while fiscal transfers are historic, true accountability and transparency can only be achieved by dispersing executive authority and empowering the most granular levels of the assembly system. As the 2025 projects commence, the focus remains on ensuring that these significant financial allocations translate into tangible improvements in living conditions and economic resilience for all Ghanaians.

This story touches markets covered on Anansi Intelligence ↗.

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Government Launches Ambitious Decentralization Drive with GH¢5 Billion Local Assembly Funding and Infrastructure Surge

More from politics

Global Governance in Flux: From Military Accountability to Groundbreaking Shifts in Political Representation

Keta MP Demands Urgent Flood Relief While National Leaders Drive Infrastructure, Agricultural, and Social Reforms

President Mahama Champions National Resilience and Welfare Reforms for Senior Citizens

Ghanaian Leaders and Legal Experts Propose Sweeping Institutional Reforms to Strengthen Democracy and Public Accountability