WaterAid Ghana says its comprehensive analysis of Ghana’s 2024 budget, reveals a disturbing 68% reduction in funding allocated to the Ministry of Sanitation and Water Resources (MSWR), compared to the previous year.
The budget for MSWR has plummeted from GHȼ1,847,454,545 in 2023 to a significantly lower GHȼ591,052,380 in 2024.
This sharp decrease is primarily attributed to a staggering 76% reduction in funding from Development Partners (DPs), overshadowing a modest 10% increase in the government’s contribution. The substantial drop in DP contributions underscores a heavy dependence on external funding, with DPs still constituting 68% of the total sector budget.
The implications of this funding crisis are severe, particularly as 83% of capital expenditure (CAPEX) within the sector relies on DPs. WaterAid Ghana expresses deep concern over the potential impact on fundraising capabilities and emphasises that achieving Sustainable Development Goal (SDG) targets for Water, Sanitation, and Hygiene (WASH) by 2030 now appears increasingly challenging.
The analysis also highlights historical challenges, including sluggish fund releases for WASH programs, especially from the Government of Ghana. Despite notable successes in compensating employees, other aspects of the sector face financial constraints.
Within the broader context of the 2024 budget, WASH is allocated a mere 0.8% of the total budget for flagship programs, with Road Infrastructure and Education receiving a disproportionate 38% and 45%, respectively.
Considering the recently launched Ghana Water Supply, Sanitation, and Hygiene Sector Development Programme (GWASHSDP), concerns grow about Ghana’s ability to achieve SDG targets for WASH by 2030. The estimated annual cost of US$1.7 billion underscores the financial magnitude required for success.
WaterAid Ghana emphasises that such inadequate allocation is not commensurate with the sector’s importance, raising doubts about the nation’s commitment to achieving international goals. Despite Ghana’s budget crossing the GHS 1 trillion mark, only 0.06% of the Gross Domestic Product (GDP) is allocated for WASH initiatives, significantly below international commitments.
WaterAid Ghana calls for immediate action on several fronts:
- Urgent Funding Increase: WaterAid Ghana urges the government to augment funding for WASH under the MSWR, aligning it with policy aspirations, targets, and the SDG6 target.
- Transparent SPL Management: Advocacy for the development of a clear framework to manage the Sanitation and Pollution Levy (SPL) and calls for transparency in inflows and disbursements.
- Accelerated Sector Reforms: Emphasis on the need to expedite ongoing WASH sector reforms, including the Community Water and Sanitation Agency reforms, new water policy implementation, Environment and Sanitation Policy review, and the establishment of the National Sanitation Authority with its accompanying sanitation fund.
- Equal Priority for WASH: Advocacy for WASH to receive equal priority as Road Infrastructure and Education within the flagship programs.
- Increased Sector Funding: A call for the government to amplify investment in sanitation at household and school levels, aligning it with international commitments for the WASH sector.
According to WaterAid Ghana, failure to address these concerns promptly could have severe repercussions, jeopardizing Ghana’s progress towards achieving critical WASH-related SDGs. The call to action underscores the urgent need to redirect efforts and resources toward sustaining and advancing the WASH sector in Ghana.
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