The country’s public debt stood at approximately GH₵613 billion as at June 2025, representing 43.8% of GDP (Bank of Ghana, 2025).

While the public debt-to-GDP ratio appears moderate relative to some regional peers, the cost of servicing the debt remains high, absorbing over 60% of government revenues in 2024, according to the Ministry of Finance.

Meanwhile, Ghana’s infrastructure financing gap is estimated at US$3–5 billion annually, aligning with broader continental estimates that Africa faces a yearly infrastructure deficit exceeding US$100 billion (AfDB, 2024).

Demand continues to grow for roads, rail systems, power generation, modernised ports, water systems, and expanded digital infrastructure to support industrialisation initiatives such as Ghana’s 24-hour economy policy and the African Continental Free Trade Area (AfCFTA) hub ambitions.

However, constrained fiscal space, persistent currency depreciation, periodic energy sector liabilities, and IMF-supported fiscal consolidation limit the government’s ability to finance infrastructure through traditional public borrowing.

Capital expenditure as a share of GDP remains low, averaging below 4% in the last decade, compared to the 7–10% recommended for accelerated infrastructure-driven growth in developing economies.

At the same time, multilateral and concessional financing alone cannot close the gap at the required pace, especially for large-scale, revenue-generating assets.

Against this background, project finance which raises capital based on the expected future cash flows of a project rather than the public balance sheet, presents a credible, scalable, and fiscally responsible pathway.

If well-structured, transparently governed, and supported by strong public–private partnerships (PPPs), project finance can unlock private capital, transfer appropriate risks, and accelerate delivery of critical infrastructure without further straining the country’s public purse.

Ghana’s Infrastructure Financing Gap Ghana’s pursuit of industrialisation, regional trade dominance, and economic transformation depends on reliable physical infrastructure.

However, public financing alone is insufficient to close the infrastructure gap.

The African Development Bank (AfDB) estimates that Africa faces an annual infrastructure financing deficit exceeding US$100 billion, with West Africa accounting for a sizable portion.

For Ghana, closing this gap requires a decisive shift toward private sector participation, capital market mobilisation, and non-sovereign debt financing models.

While Public-Private Partnerships (PPPs) are gaining traction, project finance remains underutilised despite being one of the most effective structures for large-scale infrastructure development.

Understanding Project Finance? Project finance relies on the establishment of a Special Purpose Vehicle (SPV), a legally independent entity created to finance, build, and operate a specific project.

Unlike traditional government borrowing, project finance comes with some advantages like Lenders are repaid from the project’s cash flows and not the state’s balance sheet.

(2) Project assets serve as collateral, not sovereign guarantees.

(3) Risk is allocated to the parties best suited to manage it.

These features make project finance ideal for capital-intensive ventures such as highways and toll roads, ports and airports, rail networks, power generation plants, water and waste infrastructure. Some Encouraging Signs: Ghana’s Project Finance Footprint The construction of Terminal

3 (T3) of Kotoka International Airport (KIA) in Accra, Ghana, was one of the country’s most significant infrastructure projects in recent decades.

It was designed to modernise Ghana’s aviation facilities and make Accra a major air transport hub in West Africa.

The project was initiated by the Ghana Airport Company Limited but was funded by Africa Development Bank through a $274 million loan and other financial partners built to handle a 5 million passenger’s capacity per year.

MOTA-ENGIL a Portuguese construction and engineering firm.

You may provide brief explanations for these points with relevant examples around the globe and then use the next session (Why Project Finance Works for Ghana) to narrow down to the Ghanaian context to provide specific examples of projects for which the project finance concept has been applied in Ghana (e.g. the Tema Port expansion project and the Kotoka International Airport Terminal 3 project).

Also, the Tema Port Expansion (2019): A US$1.4 billion PPP model under BOT arrangement with the objectives to increase capacity to 3+ million TEUs, increasing capacity to handle larger vessels (up to 16 m draft).

Improve port efficiency and logistics.

The project being financed by the IFC, AfDB and EIB participated in the project

syndicated loan. CHEC as the main contractor and other developers and partners like MPS, APM Terminals, Bollore Africa logistics, GHPA etc.

Why Project Finance Works for Ghana.

Project finance is a viable alternative for financing Ghana infrastructure gap.

Off-balance-sheet financing reduces pressure on public debt and fiscal deficits. Long repayment horizons (15–25+ years) match the life cycle of infrastructure assets.

Efficient risk allocation ensures risk is managed by capable parties.

Private sector efficiency reduces delays, cost overruns, and maintenance failures.

Revenue-backed repayment through tolls, tariffs, and usage fees. Some potential infrastructural gaps Ghana can finance using Project finance Ghana are Sport Stadiums, Theaters, Shadow tolls, Railways etc.

What Ghana Must Prioritise: Standardising PPP and project finance frameworks by creating clear, consistent, and transparent rules, documents, and procedures.

Empowering and capitalising GIIF so it can play a larger role in project finance.

Developing bankable revenue-assured project pipelines and Mobilising domestic institutional investors.

Some risk to manage: Poor contract structuring, creating contingent liabilities, Tariff disputes and political pushbacks and Procurement and cost inefficiencies. Mitigation measures include transparent procurement, independent audits, and value-for-money assessments

Conclusion

Ghana does not lack infrastructure ambition; what it needs is financial structuring, discipline and capital mobilization.

Project finance provides a proven pathway to build critical infrastructure at scale while preserving fiscal stability

 Authors : 

Kwasi Yeboah 

Academic city university 

Faculty Assistant ( Departments of Business Administration)

Co-author 

Dr Joseph Quarshie 

UPSA (Department of Banking and finance)

Senior Lecturer