Ghana’s Minister for Roads and Highways, Kwame Governs Agbodza, has revealed that the government has cleared GHS 5 billion of arrears owed to road contractors, as part of efforts to address a massive GHS 40 billion debt inherited from the previous administration.
Speaking on the Citi Breakfast Show on Tuesday, October 14, Mr. Agbodza said the payments — made without external borrowing — marked one of the largest single settlements to road contractors in recent history.
“Without a doubt, we’re close to about GHS 40 billion in outstanding payments for work done. The GHS 5 billion payment is the biggest made to contractors at a single time in years,” he said.
“We’re doing this without borrowing from international sources. This shows commitment, prudence, and responsible fiscal management from President Mahama and the Finance Minister.”
The Minister described the payment as a testament to government’s discipline and focus, noting that it was achieved despite limited fiscal space and competing national priorities.
Inherited Debt Weighs on Infrastructure Development
Mr. Agbodza explained that much of the current financial burden stems from unpaid certificates accumulated under the previous Akufo-Addo administration, which had left contractors across the country in distress.
He emphasized that the Mahama-led government was determined to restore confidence in the construction and road sector by progressively clearing verified arrears.
“We owe a lot, but we’ll continue to pay as much as government revenue allows,” he assured. “This is about rebuilding trust and ensuring contractors can return to site.”
Response to Industry Concerns
The Minister’s comments follow a public appeal by the Ghana Chamber of Construction Industry (GhCCI), which recently warned that delayed payments were threatening the continuity of ongoing infrastructure projects and thousands of jobs nationwide.
In a letter dated September 29, 2025, the Chamber accused the government of failing to meet President Mahama’s earlier pledge to clear all arrears by July 2025, describing the situation as “financially crippling” for contractors, consultants, and suppliers.
Hope for Sector Revival
Despite the Chamber’s concerns, Mr. Agbodza assured that government remains fully committed to the Big Push Agenda, which seeks to boost public infrastructure delivery while ensuring financial discipline.
He stressed that the recent payments signal a turnaround for the industry and reaffirmed that all genuine claims will be honoured over time.
“We inherited a mountain of debt, but we are tackling it systematically,” Mr. Agbodza said. “The government’s approach is to pay what is due, keep projects active, and prevent the total shutdown of the construction sector.”
