2025 Budget: Stakeholders Demand Increased Funding for Water and Sanitation
Experts warn that without sustainable financing, the country risks failing to meet its goal of universal access to clean water and sanitation by 2030.
The government has emphasized its commitment to improving social services, including WASH, as part of its Resetting Ghana agenda. In 2024, it endorsed the Coalition of NGOs in Water and Sanitation (CONIWAS) WASH Manifesto, which advocates for higher budget allocations and policy focus on the sector. However, stakeholders argue that previous commitments have not translated into adequate financial support.
Ghana’s WASH sector remains one of the least funded in the national budget. Since 2016, government expenditure on WASH has consistently remained below 1%, with donor funding accounting for the majority of sector financing. In 2024, donor contributions made up 95% of the total WASH budget, while the government’s allocation stood at just 5%.
Data from the Ghana Statistical Service’s 2021 Population and Housing Census indicate that water coverage stands at 87.7%, but significant disparities exist between urban and rural areas. Sanitation coverage remains critically low at 25.3%, while hygiene coverage is around 50%.
According to the Ghana WASH Sector Development Programme, the country requires an estimated GHS 1.7 billion annually to achieve universal access to water and sanitation by 2030. This includes investments in urban and rural water supply, sanitation infrastructure, and system strengthening.
Stakeholders are demanding that the government increase its domestic financing for WASH to reduce reliance on donor support. Expanding access to safe water, particularly in urban centers like Accra, Kumasi, Tamale, and Cape Coast, remains a major concern as demand continues to outstrip supply. Additionally, rural communities require urgent investments to improve their water infrastructure.
Illegal mining (galamsey) has emerged as a significant threat to Ghana’s water bodies, with major rivers and freshwater sources heavily polluted. Experts are urging the government to allocate adequate funding for enforcement efforts to curb the activities of illegal miners and protect water sources.
Climate change poses an increasing risk to water security in Ghana. Stakeholders expect the budget to prioritize funding for the National Adaptation Plan (NAP) and Nationally Determined Contributions (NDCs) to enhance climate resilience. The Ministry of Climate Change and Sustainability, recently created to tackle environmental challenges, is expected to play a leading role in implementing adaptation measures.
Given the capital-intensive nature of water infrastructure development, experts are advocating for stronger partnerships between the government and private sector. Encouraging Small Water Enterprises (SWEs) through regulatory incentives could help mobilize additional resources for WASH improvements.
Civil society organizations, including WaterAid Ghana, are pushing for a minimum budgetary allocation of US$1.7 billion for WASH in 2025. They are also calling for increased funding to combat illegal mining and implement climate adaptation policies.
With the 2025 budget set to be presented in the coming weeks, all eyes are on the government to see whether it will prioritize water and sanitation as a fundamental pillar of national development.
2025 Budget: Expectations of the Water and Sanitation Sector.
1.0 Introduction
As Ghana embarks on its ‘Resetting Ghana’ agenda, the upcoming national budget presents a critical opportunity to transform the Water, Sanitation, and Hygiene (WASH) sector. Without sustainable investments, Ghana risks failing to achieve universal access by 2030, further deepening inequalities and stalling economic growth.
In its 2024 election manifesto, the President pledged to expand social services to promote equity and social justice. A key focus is on Water, Sanitation, and Hygiene (WASH), recognizing it as a critical sector requiring political prioritization and sustainable funding to catalyze progress in other areas of Ghana’s economy. The government commitment to WASH is further evidenced by its endorsement of the Coalition of NGOs in Water and Sanitation (CONIWAS) 2024 WASH Manifesto, which emphasizes the need for increased financing and policy attention to achieve universal access to basic water and sanitation services by 2030. As the administration prepares to unveil its financial plan, stakeholders are keen to see how these commitments will translate into actionable policies and budgetary allocations, particularly in the WASH sector, to foster comprehensive national development.
The Sustainable Development Goal (SDG) 6. It seeks to ‘‘to ensure the availability and sustainable management of water and sanitation for all by 2030’’. However, it services directly influence health outcomes, education, economic productivity, and environmental sustainability
At the heart of this SDG 6 is sustainability, which means protecting and preserving rivers, water bodies and freshwater resources should not be handled on a matter of political expediency. The state and citizens must forge partnership to tackle issues of pollution of water bodies, stop illegal mining on water bodies and around rivers. It also means putting in place policy measures such as the National Adaptation Plan (NAP) to mitigate the effects of climate change.
The Ghana Statistical Service 2021 Population and Housing Census Report estimate water coverage to be 87.7%, albeit serious inequalities in access between urban and rural areas, men and women, boys and girls. Sanitation coverage is estimated at 25.3% with both solid and liquid waste situation poor in Ghana. Hygiene coverage is around 50% with challenges in promotion effective hand hygiene post-COVID-19.
Leave no one behind is the mantra of the SDGs. Which means social equity and justice is at the core if the seventeen SDGs are to be achieved. Importantly also, No Poverty (SDG1), No hunger (SDG2), Good health and wellbeing (SDG3), Gender equality (SDG 5) and all other SDGs cannot be achieved without priority attention to clean water and sanitation (SDG6). This is because safe water and decent sanitation is at life and dignity, and represent the foundation of development at family, community and national levels.
The WASH sector is one of the least funded sectors. It has remained under 1% of government expenditure since 2016, with higher donor funding which is unsustainable. To accelerate the achievement of SDG6, the government of Ghana must increase investment sanitation and hygiene at household, schools and healthcare facility levels. Estimates from the Ghana WASH Sector Development Programme indicate that Ghana’s WASH needs investment of GHS 1.7 billion per annum up to 2030 if we are to achieve water, sanitation and hygiene for all. The breakdown include cost for Water Resources Management (US$8m), Urban Water Supply (US$420m), Rural/Community Water supply(US$350M), Basic sanitation for rural and urban (800m), hygiene (US$60) and system strengthening
(US$60m). These investment requirements include cost for maintaining existing services and expanding services to all between 2021-2030. With the reset agenda and reduced number of Ministries, expenditure rationalization, prudent financial management, this is possible for GoG. WASH needs sustainable, predictable and equitable financing.
Though allocation to the sector as a proportion of government expenditure increased from 0.59% in 2023, and as a proportion to GDP, in increases from 0.17% in 2022 to 0.23% in 2023, it is still below the eThekwini target of 0.5% of GDP. The WASH sector has remained predominantly donor funded. In 2022, 73% of the total budget allocated to the sector was from donor sources while 22% came from GoG. In 2023, donor funding for the sector increased to 92%, an increase of 18% over the 2022 allocation while GoG allocation has reduced to 8% in 2023. In 2024, donor funding was 95% while GoG funding was 5%. This is not encouraging, and certainly not sustainableas ongoing gaps in aid ample demonstrate this.
GoG must endeavour to reverse this trend if it wants to achieve WASH for All in Ghana and accelerate the attainment of the SDG6. It is important for government to take ownership of financing the sector and partner with private sector using the mechanisms of Public-Private Partnership (PPP) model. Water infrastructure is capital intensive and requires huge capital investment. Ghana Water Limited (GWL) needs huge financing to replace aged pipelines to boost safe water supply. Regional Capitals like Tamale, Cape coast, Ho, Takoradi, Kumasi and parts of Accra are experiencing daily water shortage because demand outstripped supply. Rural areas where community water supply is most needed also require huge investments. The situation is compounded by activities of illegal mining on river bodies where GWL intake points are found, especially in Central, Western, Eastern and Ashanti Region Regions. The Community Water and Sanitation Agency (CWSA) which is undergoing reforms to professionalize rural and small-town water delivery need sustainable funding to expand their operations as well. Hygiene infrastructure and education at public places including lorry parks, recreational centres, markets and other areas equally need investment which was also costed in the Ghana WASH Scetor Development Programme. The gains made in hygiene programme post-COVID 19 is almost gone.
The public expectations are huge. People want safe water to flow through their taps on daily basis, and clean cities which will guarantee them good health with due regard to social equity and economic growth.
The GoG has committed to safeguarding investment in the social sector even within the three-year IMF programme.The WASH sector is at the heart of social sector. Safe WASH is sine quo non for good health, livelihood activities, education among others. Indeed, none of the 17 SDGs will be achieved without necessary attention paid to safe WASH. Health care facilities (HCF), WASH in Schools need adequate supply of safe water to provide quality healthcareand ensure safe birth. Patients who attend hospitals must use safe and hygienic toilets and wash their hands with soap to prevent hospital-acquired infections. The budget allocations should reflect historical geographic development imbalances, and sub-sector inequities. The District Assembly common fund should be released on timely basis with robust monitoring of utilization to ensure value for money.
Safe water supply is critical for economic growth. It is central to propel both macro and micro economic indicators because it is an enabler to production and sustains the productive base of any economy. Food sellers, market women, traders at all levels, factory workers need adequate supply of safe water to produce their goods to earn income which can be taxed as a source of revenue for government. Decent sanitation and hygiene will improve public health and ensure promote citizen well-being. Indeed, a healthy nation is a wealthy nation.
Ministerial Alignment/Institutional re-alignment: Environmental Health and Sanitation Directorate (EHSD) is back to Ministerial of Local Government, Chieftaincy and Religious Affairs. It was under the Ministry of Local Government in 2016, before the creation of the defunct of Sanitation and Water Resources when it was moved there alongside the Water Directorate. There is the need to maintain and improve co-ordination between the EHSD and the Water Directorate which is now at the Works, Housing and Water Resources Ministry to improve the fortunes of WASH Sector. Importantly, there is urgent need to promote inter-Ministerial coordination among key and allied ministries such as Ministry of Environment, Science and Technology, Ministry of Health, Ministry of Education, Ministry of Local Government, Chieftaincy and Religious Affairs and Minister of state in-charge of Climate Change to ensure policy coherence, monitoring and supervision for effective delivery.
: Small Water Enterprises (SWEs) should be encouraged with clear service area delineation to incentivize them to bring in the much-neededcapital, with clear PPP arrangements and clear regulatory regime for water quality.
The threat of illegal mining/galamsey on rivers, freshwater bodies and forest is a big one and should not be ignored. Water quality is challenged by illegal mining, uncontrolled pollution and dumping of refuse. The Ministry of Environment, Science and Technology should marshal all the needed human, material and financial resources coupled with the right ‘’intelligence’’ to crush the ‘‘mass-murderers’’ who disguise themselves as ‘‘galamseyers’’ and pollute Ghana’s water bodies and fresh rivers.
Climate change is an existential threat. Luckily, in addition to the Ministry of Environment, Science and Technology, there is now the Minister of state responsible for climate change and sustainability. This tells how the President is serious to tackle climate change. The National Adaptation Plan (NAPs) and National Determined Contributions (NDCs) for climate change should be fully funded by Government of Ghana to implement the adaptation measures to stem the tide of climate change. The climate crises are water crises!
4.0
• Make allocation of at least US$ 1.7 billion for WASH issues in 2025 budget.
• Make appropriate funding allocation to solve the problem of illegal mining in water bodies
• Make appropriate funding allocation to implement NAPs and NDC policies on climate change.
Written and signed by:
Ibrahim Musah
Head of Strategy, Policy and Campaigns
WaterAid Ghana
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