As Ghana's Finance Minister, Dr. Cassiel Ato Forson, prepares to present the 2027 budget and economic statement to Parliament, stakeholders are urging for increased focus on the Water, Sanitation, and Hygiene (WASH) sector. The sector has the potential to drive economic growth, improve public health outcomes, and promote climate resilience. With Ghana's tourism potential yet to be fully realized, safe water supplies and a clean environment are crucial. The WASH sector can play a significant role in addressing critical job issues.
The International Monetary Fund (IMF) has upgraded Ghana's 2026 growth forecast from 4.6% to 5.7%, indicating signs of macroeconomic stability. The government's aim to "turn economic stabilization into sustained transformation" is expected to be reflected in the 2027 budget. A new-economy vision, including the WASH sector, is expected to be unveiled, with a focus on addressing job creation and economic growth. The WASH sector's potential to provide safe WASH for industrial growth and job creation cannot be underestimated.
The new District Assembly Common Fund (DACF) formula, which started in 2025, allocates 10% to water and 10% to sanitation. However, monitoring and disbursements to water and sanitation in all 261 MMDAs require attention. A strong accountability regime is needed to sustain this innovative WASH financing by President Mahama. The transformative potential of the WASH sector for economic growth, poverty reduction, and social and human capital development means more funding is needed.
Investing in the WASH sector yields significant returns, with every dollar invested generating a $5-6 return. These returns go beyond economics, including improved educational outcomes, girls' and women's empowerment, and reduced diarrheal cases. Treating WASH as productive economic infrastructure can lead to massive returns, with every GHS 1 invested in sanitation generating up to GHS 4.30 in multi-sectoral returns.
The link between water access, food security, and community resilience is critical. Access to safe water is fundamental to development and transformation. Without safe water, economic activities cannot thrive. The WASH sector's role in promoting food security and community resilience cannot be overstated. Strategic capital injections into decentralized preventive infrastructure, market-based sanitation enterprises, and women-led micro-enterprises can shift passive aid dependency toward vibrant economic growth.
The Ghana WASH Sector deserves priority and increased budgetary allocation in the 2027 budget. Global and local evidence demonstrates the significant returns on investment in the WASH sector. Economic models project annual health and productivity savings of up to GHS 67 billion by 2032. Increased funding for the WASH sector can lead to job creation and poverty reduction.
As the government prepares to unveil the $10 billion New Economy Programme, stakeholders are urging for the inclusion of the WASH sector. The sector's potential to drive economic growth, improve public health outcomes, and promote climate resilience makes it a critical component of Ghana's economic transformation. With a strong accountability regime and increased funding, the WASH sector can play a significant role in Ghana's economic growth and development.
Key points
- The WASH sector can drive economic growth and job creation in Ghana.
- Increased funding for the WASH sector can lead to significant returns on investment.
- The WASH sector's role in promoting food security and community resilience is critical.
