Govt to Clear Long-Standing Arrears Owed to Road Contractors - Mahama
Accra, Ghana - 8 July, 2025 - President John Mahama has announced that Ghana’s government will begin clearing long-standing debts owed to road contractors this month, a move aimed at reviving stalled infrastructure projects across the country, as revealed during a meeting with the Council of State in Accra on 7 July 2025.
The pledge, which follows months of financial restructuring and economic stabilization efforts, reflects Mahama’s administration’s focus on addressing inherited fiscal challenges while boosting public confidence in Ghana’s infrastructure development.
Speaking at the Presidency, Mahama emphasized that the Ministry of Finance has allocated GH¢13 billion for arrears clearance in the 2025 fiscal year, with a significant portion earmarked for road contractors to resume work on delayed projects.
The announcement comes amid growing concerns over abandoned roadworks, including the critical Winneba-Kasoa highway dualisation project, as highlighted by Minority Leader Alexander Afenyo-Markin in Parliament on 2 July. Mahama’s commitment is part of a broader strategy to restore economic stability following Ghana’s 2022 debt default, which left contractors unpaid and projects stalled due to fiscal constraints under the previous administration.
Mahama, who returned to power in January 2025 after defeating former President Nana Akufo-Addo in the 2024 election, has prioritized economic recovery and infrastructure development. His administration has secured a $370 million disbursement from the International Monetary Fund (IMF) on 7 July, following the fourth review of Ghana’s $3 billion Extended Credit Facility (ECF) programme, bringing total support to over $2.3 billion.
The funds have strengthened reserves, now at $11 billion, and supported a 40% cedi appreciation in 2025, reducing the debt-to-GDP ratio to 55%. A $2.8 billion debt restructuring deal with 25 creditor nations, including China and France, approved by Parliament on 24 June, has also eased fiscal pressures, enabling allocations for arrears clearance.
The Deputy Minister of Finance, Thomas Ampem Nyarko, confirmed on 2 July that the upcoming mid-year budget review, scheduled for August, will provide detailed clarity on contractor payments, criticizing the previous government’s fiscal mismanagement for accumulating unsustainable debts.
The Ministry’s efforts are complemented by a $360 million World Bank facility approved on 2 July, aimed at supporting infrastructure and economic resilience. Mahama’s administration has also serviced $1.17 billion in Eurobond debt obligations in 2025, with a $349.5 million payment made on 3 July, signaling restored creditor confidence.
