WaterAid Ghana: Calls for Ghana WASH Domestic Investment, Proposes Sanitation Authority

• WaterAid Ghana calls for increased domestic investment in WASH, noting that 90% of current projects are donor-funded and unsustainable.
• A National Sanitation Authority is proposed to provide dedicated leadership, set standards, and ensure effective service delivery for sanitation.
• The establishment of a Sanitation Fund is suggested, alongside a call for media investigation into the existing sanitation and pollution levy's collection and use.
• Blended finance models, combining public resources, taxes, and concessionary loans, are recommended to attract private investors to the WASH sector.

The current reliance on external donors for approximately 90 percent of Ghana's WASH infrastructure projects is deemed unsustainable, necessitating a fundamental shift in how the sector is financed.

An international non-governmental organization, WaterAid Ghana, has issued a significant call for Ghana to transition from its heavy reliance on external donor funding towards greater domestic investment in the water, sanitation, and hygiene (WASH) sector. This strategic shift is deemed essential to ensure sustainable access to these critical services across the nation. The organization highlighted that an estimated 90 percent of Ghana's WASH infrastructure projects currently depend on donor financing, a situation it characterized as unsustainable for long-term development.

This urgent appeal was made during the Ghana Water Sector Overview Editors' Roundtable, an event held in Accra yesterday. The roundtable was collaboratively organized by WaterAid Ghana and the Ghana Water Journalists Network, bringing together key stakeholders to discuss the future of WASH financing. Murtala Abdul Mumin, the WASH Monitoring and Financing Senior Adviser at WaterAid UK, emphasized that Ghana must fundamentally rethink its approach to financing the sector. He stressed the importance of moving beyond mere infrastructure construction to developing robust financing systems capable of sustaining services over time.

To address the systemic challenges within the sanitation sector, Mr. Mumin advocated for the establishment of a dedicated National Sanitation Authority. This proposed body would be tasked with providing stronger leadership, a critical component currently lacking. The envisioned authority would possess the mandate to prioritize sanitation initiatives, establish clear standards for service delivery, and ensure their effective implementation across the country.

He pointed out that sanitation responsibilities currently fall under the Ministry of Local Government, which, while important, is not structured as an implementing agency. This organizational gap, he argued, necessitates an independent institution specifically designed to lead the national sanitation agenda and integrate sanitation as a daily priority within governmental operations and public consciousness.

Beyond institutional reform, WaterAid Ghana also proposed the creation of a dedicated Sanitation Fund to bolster financial support for the sector. This fund would complement existing revenue streams and provide a more stable and targeted source of financing for WASH initiatives. Notably, Ghana previously collected a standalone sanitation and pollution levy, which has since been consolidated into the Energy Sector Shortfall and Debt Repayment Levy through the passage of the Energy Sector Levies Act 2025, Act 1135.

In light of this existing levy, Mr. Mumin urged media outlets to undertake investigations into the total revenue accrued from these charges and to assess the effectiveness of its current utilization. He underscored the principle of public accountability, stating that citizens who contribute to this fund through their fuel purchases have a right to know precisely how much has been collected and to what extent they are benefiting from its deployment.

To further diversify funding and reduce the financial burden on public resources, Mr. Mumin suggested exploring blended finance models for private sector participation in the WASH sector. This approach involves strategically combining various financial instruments, including public resources, tax revenues, and concessionary loans. The primary objective of blended finance is to mitigate investment risks, thereby making the WASH sector a more attractive proposition for private investors.

He further elaborated that Ghana could draw inspiration from successful models in other sectors, such as the independent power producers (IPPs) framework within the energy sector. Adapting similar structures, he posited, could effectively encourage and facilitate private investment in water services, fostering innovation and efficiency while reducing the country's dependence on traditional funding mechanisms.

Lawyers advising clients in Ghana's water, sanitation, and hygiene (WASH) sector or those subject to environmental levies should monitor potential legislative changes arising from calls for a National Sanitation Authority and Sanitation Fund, as these could introduce new regulatory frameworks, compliance obligations, or opportunities for private sector participation and blended finance models. Increased scrutiny on the existing sanitation and pollution levy may also lead to heightened audit risks for contributing entities.

Source: Original reporting via Ghanaian Times