Ghana’s development projects are costing far more than planned, with the country recording a staggering GH₵ 70.3 billion in cost overruns across ministries, departments, and agencies (MDAs), according to the 2024 Annual Progress Report of the National Development Planning Commission (NDPC).

The report indicates that macroeconomic instability, including low GDP growth, high inflation, and volatile exchange rates, has significantly inflated the cost of government investment projects, pushing most beyond their original budgets and timelines.

Data in the report shows that the total contract sum for all ongoing capital projects stood at GH₵ 434.8 billion, but this figure rose to GH₵ 505.8 billion after revisions, resulting in a GH₵ 70.3 billion overrun.

Despite the huge expenditure, only GH₵ 189.7 billion has been paid so far, leaving an outstanding balance of GH₵ 315.4 billion yet to be settled.

The Ministry of Roads and Highways recorded one of the highest cost escalations, with its project sum increasing from GH₵ 14.99 billion to GH₵ 20.09 billion, an overrun of GH₵ 5.09 billion.

The Ministry of Health, Ministry of Works and Housing, and Ministry of Energy also posted significant increases, reflecting widespread budgetary pressures across key infrastructure sectors.

The NDPC noted that these financial overruns were accompanied by severe time delays, with many projects extending “by years beyond their scheduled completion.”

It attributed the situation to funding constraints, poor project planning, and inflationary shocks that continue to drive up construction costs.