Ghana’s 2025 Budget Statement and Economic Policy, themed “Resetting the Economy for the Ghana We Want”, shows a pivotal shift towards fiscal discipline, economic transformation, and sustainable growth.
Presented by Finance Minister Dr Cassiel Ato Forson on March 11, 2025, the budget addresses the aftermath of 2024’s fiscal challenges, including arrears accumulation and debt restructuring, while prioritising infrastructure development and job creation.
With total expenditures set at GH¢268.8 billion (a 3.2% decrease from 2024) and a focus on a primary surplus of 1.5% of GDP, the budget emphasises efficiency and private sector involvement.[1]
This analysis examines how Public-Private Partnership (PPP) frameworks, government priorities, and proposed law amendments in the budget could influence project finance. Project finance, which relies on ring-fenced funding for large-scale infrastructure,[2] would benefit from this enhanced governance and investment incentives if managed with precision.
PPP Frameworks in the 2025 Budget
The 2025 budget reinforces PPPs as a key mechanism for infrastructure financing, building on the Public-Private Partnership Act, 2020 (Act 1039), which regulates partnerships for infrastructure and services while promoting private sector resources.[3]
There are 3 key updates highlighted by the budget. They are:
1/ Updating and aligning the PPP Plan with National Development Goals to operationalise the Viability Gap Facility (VGF). The VGF, established under Act 1039,[4] provides funding to make economically viable but financially challenged projects attractive to private investors by bridging revenue shortfalls.
2/ Preparing the PPP Plan for publication and submitting the 2024 Annual PPP Report to Parliament, alongside finalising the National Asset Management Framework.[5]
3/ Continuing PPPs for road infrastructure financing, construction, and management, such as the Accra-Tema Motorway Extension Project, which commenced in 2024.[6]
These updates could positively impact project finance by reducing risks for lenders and investors. The VGF, for instance, addresses viability issues in projects like roads or energy, potentially attracting more debt and equity financing. According to the Ministry of Finance’s Medium-Term Expenditure Framework (MTEF) for 2025-2028, PPP regulations will be developed and submitted to Parliament, further streamlining processes.[7]
This initiative ensures oversight and transparency, which would thus align with global practices. Furthermore, if these changes happen, they’ll put in strict rules to stop unfair awards, payment problems, or overspending—risks that make lenders less likely to lend money without guarantees. They’ll make contracts easier to enforce and lower the chances of disputes under Ghanaian law or international agreements (like BITs or multilateral guarantees).
However, we should not be oblivious to the fact that stricter rules might make it take longer to buy stuff, which could delay the closing of the deal.
Amending Laws and Their Impact on Project Finance
The budget proposes amendments to several laws to enforce fiscal responsibility, enhance procurement, and support economic priorities.
The amendments proposed by the budget include:
1/ Public Financial Management (Amendment) Act, 2025 (Act 1136): This amendment repeals the Fiscal Responsibility Act, 2018 (Act 982). This Act required the overall fiscal balance to result in an annual fiscal deficit not exceeding 5% of GDP, with targets for achieving a positive primary balance (revenues exceeding non-interest expenditures) in certain years. Thus, the new amendment introduces a primary balance rule (surplus of at least 1.5% of GDP annually) and a debt rule (reducing public debt to 45% of GDP by 2034). The amendment ensures sustainable financing for projects and directly affects project finance by improving governance and reducing risks.
2/ Public Procurement Act, 2003 (Act 663): The budget proposes amendments to establish an Independent Value-for-Money Office for scrutinising procurements above parliamentary thresholds, and mandating commencement certificates linked to budgets.[8] This would reduce corruption risks in project tenders.
3/ Customs Act, 2015 (Act 891): It further proposes amendments for concessions on two- and three-wheeled electric vehicles under the Automotive Development Programme.[9] To boost financing under this programme.
4/ Energy Sector Levies (Amendment) Act, 2025 (Act 1135): This amendment proposes to consolidate levies and adds a GHS1 per litre levy on petroleum products to fund energy shortfalls, impacting project costs in energy finance.[10]
Effects on Project Finance
The interplay of PPP frameworks, priorities, and amendments could transform Ghana’s project finance landscape. Enhanced PPPs, through the activation of the VGF and updated plans, reduce fiscal burdens on the government, attracting lenders by mitigating viability risks—essential for infrastructure projects under the Big Push.[11]
The legal changes (amendments) could enhance project finance by fostering transparency and predictability. Firstly, under the Public Financial Management Act (PFM Act) (Act 921), the government is shifting toward much stricter fiscal discipline by ensuring all spending is backed by a clear budget. This means a zero-tolerance approach to unapproved spending, where departments must use formal purchase orders for long-term projects and face public “league tables” or legal sanctions for breaking the rules. For private investors and contractors, this is a double-edged sword.
While it makes the government more financially reliable by reducing the risk of a national debt crisis, it also means the government can no longer offer off-the-books guarantees or emergency bailouts for projects. Consequently, developers must now ensure their projects are financially self-sustaining or seek additional backing from international lenders, as the government can only provide support that has been strictly pre-authorised by law. Further, the debt rule under the amended PFM Act aligns with IMF-supported debt sustainability, potentially lowering borrowing costs for the government.[12] These notwithstanding, the stricter procurement laws may delay approvals, and the levy amendments could increase operational costs for energy projects.
Conclusion
Ghana’s 2025 Budget strategically recalibrates project finance by integrating enhanced PPP frameworks with stringent legal reforms. The operationalisation of the Viability Gap Fund (VGF) and updated PPP plans directly target project viability, de-risking investments to attract private capital. At the same time, changes to the Public Financial Management Act ensure the government keeps its finances in check by requiring a budget surplus and limiting debt, which lowers the risk for investors and makes the economy more predictable.
However, this disciplined framework presents a dual reality. While it increases government reliability and transparency, it also eliminates implicit state support, demanding that projects be strictly bankable. Stricter procurement and new sectoral levies may introduce delays and higher costs, complicating financial models.
Ultimately, the budget constructs a more structured, rules-based investment environment. Its success depends on consistent implementation, parliamentary approval of amendments, and sustained stakeholder engagement. If executed with vigilance, these measures can transform Ghana’s project finance landscape, balancing infrastructure-driven growth with long-term fiscal sustainability to achieve the envisioned economic reset.
By: Fauziya Tijjani Esq. and Fuad Wumpini Alhassan[13]
[1] 2025 Budget Statement, pages 58-59
[2] JM Pinto , ‘What is project finance?’ (2017) 1 Investment Management and Financial Innovations 200-210
[3] Public-Private Partnership Act, 2020, (Act 1039) Sec 1
[4] Public-Private Partnership Act, 2020, (Act 1039) Sec 80-83
[5] 2025 Budget Statement, page 98
[6] 2025 Budget Statement, page 114
[7] MTEF 2025-2028, page 54; available at
[8] 2025 Budget Statement, page 63
[9] 2025 Budget Statement, page 95
[10] Energy Laws and Regulations, 2026; available
[11] World Bank PPP Report, 2023
[12] IMF Fifth Review, 2025
[13] Fauziya Tijjani is a Ghanaian lawyer that holds an LLM in International Trade and Investment Law in Africa from the University of Pretoria, South Africa; Fuad Wumpaeh Alhassan holds a master’s in economics from Eastern Illinois University, United States, and is a credit risk analyst at JP Morgan & Chase in Delaware.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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