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Explain How a GHȼ113 Million Debt Turns into a GHȼ665 Million Interest Burden

  • Jan 20, 2025
  • 2 min read

Governs Agbodza, the Minister-designate for Roads and Highways, has called for an immediate overhaul of the government’s approach to fulfilling its financial commitments to road contractors, citing concerns over the disproportionate share of funds being consumed by interest payments rather than actual road construction.


Governs Agbodza Calls for Reform in Government’s Road Construction Payment System
Governs Agbodza Calls for Reform in Government’s Road Construction Payment System

During his vetting on Monday, January 20, Agbodza expressed frustration over the current practice, which he argued is draining the national budget without delivering value to either the government or the contractors. He pointed out that the excessive interest payments are diverting funds that should be used for building and maintaining roads.


“This cannot continue. This is not value to Ghana, and this is not value to the contractor,” Agbodza emphasized. “This is money being wasted. We cannot accept that you owe somebody 4 billion, and in this year, you are going to pay a total of 15 billion, that is principal plus interest. This cannot continue."


Agbodza’s criticism highlights the financial inefficiencies within the system, where the cost of servicing debts continues to rise, ultimately contributing to delays in road construction projects. He argued that the interest burden significantly increases the overall cost of infrastructure projects, further straining public funds that could be better spent on actual road development.


Agbodza’s call to end this pattern signals his intention to prioritize financial discipline and transparency in the Roads and Highways Ministry. He aims to restructure how contractors are paid to ensure that more of the allocated funds go directly to construction, rather than being consumed by interest rates and fees.

By pushing for more efficient payment systems and eliminating wasteful practices, Agbodza hopes to maximize the impact of road construction funds, ultimately improving the nation’s infrastructure.


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