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Gov’t Launches Procurement Reforms to Save GH¢2.36 Billion Lost Annually
September 21, 2025
The government has announced sweeping reforms to Ghana’s public procurement system, targeting an estimated GH¢2.36 billion lost each year through procurement breaches.
Speaking at the National Procurement and Supply Conference in Accra on Saturday, September 20, Deputy Finance Minister Thomas Nyarko Ampem said the reforms are designed to strengthen accountability and ensure value for money in public spending.
Citing a Ghana Institute of Procurement and Supply (GIPS) report, he described the annual losses as a serious drain on scarce resources that could be used to build hospitals, schools and climate-resilient infrastructure.
“Why are we spending more on inefficiencies and infractions than on the most vulnerable in our society? Procurement inefficiencies rob us of opportunities to create jobs and expand access to critical services,” Mr. Nyarko Ampem stated.
The Deputy Minister pointed to unauthorised procurements, inconsistent evaluations, poor supervision, and specifications skewed to favour certain suppliers as common issues undermining development and eroding public trust.
To curb the problem, the government has:
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Amended the Public Procurement Act, making commencement certificates and budget allocations mandatory for all central-government-funded procurements.
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Established a PFM Compliance Division within the Ministry of Finance to enforce adherence through the Ghana Electronic Procurement System (GHANEPS).
He further disclosed that Cabinet is reviewing a Procurement Practising Bill aimed at professionalising the procurement function, embedding sustainability measures, and tightening anti-corruption safeguards.
“This legislation is expected to raise standards and give procurement the strategic importance it deserves,” he said.
The reforms, Mr. Nyarko Ampem added, are anchored in President John Mahama’s economic reset agenda and align with the 24-Hour Economy Programme, which emphasises local production, green procurement and job creation.
The conference, themed “Transforming Public Procurement for Sustainable Development: Policies, Practices and Pathways,” called on procurement professionals to embrace technology, strictly enforce existing laws, and insist on value for money to drive inclusive growth.
