Accra–Kumasi Expressway Underway: No Loans Needed

The government expects to secure the full financing required for the proposed Accra–Kumasi Expressway by the end of 2026 without taking on new borrowing, Finance Minister Dr Cassiel Ato Forson has said.

The announcement provides a fresh indication of how the government intends to finance one of its major infrastructure projects while attempting to limit additional pressure on the country’s public debt.

According to the Finance Minister, the administration’s objective is to ensure that funding for the project is available before construction advances significantly.

Government rules out borrowing

Speaking about the financing arrangement, Dr Forson said the expressway would not be funded through new loans.

“For the avoidance of doubt, not a single pesewa will be borrowed for this project.”

The government’s position places the project’s financing model at the centre of attention, particularly as Ghana continues to manage its public finances following years of elevated debt pressures.

Rather than relying on a new project-specific loan, the government has indicated that domestic and existing public resources will form part of the financing arrangement.

US$1.7 billion already earmarked

The latest announcement follows earlier disclosures that approximately US$1.7 billion has been set aside for the Accra–Kumasi Expressway.

The funds are being held in a dedicated account at the Bank of Ghana, according to previous government statements.

Officials have also sought to distinguish between money allocated for the project and money already spent on construction.

That distinction became important following public discussion over billions of cedis reportedly connected to the project. The Controller and Accountant-General’s Department subsequently clarified that funds transferred into the dedicated account had not been paid to a contractor for construction.

A new link between Accra and Kumasi

The proposed expressway is intended to provide a high-capacity road connection between Accra and Kumasi, two of Ghana’s largest economic centres.

Government plans describe a roughly 176-kilometre, six-lane expressway, forming part of the wider Big Push infrastructure programme.

The project is expected to include supporting infrastructure such as interchanges, bridges, rest areas, emergency facilities and electronic tolling systems.

One of the government’s principal arguments for the project is travel time.

Officials say the new expressway could reduce the journey between Accra and Kumasi to around two hours, although that target will ultimately depend on the final road design, construction and operating conditions.

Preparatory work moves forward

Work undertaken so far has largely centred on preparations rather than construction of the main expressway.

These activities have included clearing sections of the proposed right-of-way, engineering and feasibility work, environmental assessments and preparations for land compensation.

The procurement process and eventual award of construction contracts will therefore represent crucial stages in determining both the final cost and delivery timetable.

Why the financing pledge matters

The government’s decision to emphasise that the project will be delivered without new borrowing is significant.

Major road projects frequently require large upfront expenditure, and financing arrangements can affect government debt long after construction has been completed.

Securing the money before major contractual commitments are made could reduce the risk of construction being interrupted because of financing shortages.

However, having money earmarked for a project does not by itself guarantee successful delivery.

Contract procurement, compensation payments, construction costs, exchange-rate movements, engineering challenges and project supervision could all affect the eventual price and completion date.

Attention now shifts from funding to delivery

The government has previously indicated that construction of the expressway could take approximately three years, with completion targeted within the current administration’s infrastructure programme.

For motorists and businesses travelling between southern and central Ghana, the project could have broader economic implications.

The Accra–Kumasi corridor carries passenger traffic as well as commercial vehicles transporting goods between different parts of the country. Faster and more predictable journeys could reduce transport costs and improve connections between major markets.

But the government’s latest announcement is primarily a financing commitment, not an announcement that the expressway itself will be completed by the end of 2026.

The year-end target relates to securing the full funding required for the project.

That distinction will be important as the project progresses and public attention moves from government pledges to procurement, construction and ultimately the number of kilometres of road delivered.