Ghana Pays $10B Road Arrears in Historic Settlement

Ghana just made history by clearing a mountain of debt that had been holding back critical road projects for nearly a decade.

Roads and Highways Minister Kwame Agbodza announced that by December 31, 2025, the government had paid more than GH¢10 billion (approximately $650 million USD) in overdue contractor payments. The settlement happened in just two to three months, a speed never before seen in Ghana's infrastructure sector.

"Where in our history can we say that, between the space of two or three months, a government paid close to GH¢10 billion of arrears to contractors?" Agbodza asked during an interview on Joy FM's Super Morning Show. The debts had accumulated over eight years from projects awarded before President Mahama's current administration took office.

The massive payment clears the way for contractors to mobilize resources and resume work efficiently. Many road projects across the country had stalled or slowed as companies waited for payment, lacking the funds to purchase materials and pay workers.

The Ripple Effect

This financial breakthrough means more than just settled accounts. Construction crews can now get back to full capacity on projects that communities have been waiting years to see completed.

The Eastern Corridor Road, one of Ghana's longest single road networks, is now expected to reach completion by December 2027. Outstanding sections that had languished in limbo can finally move forward with proper funding and resources.

Better roads mean farmers can get crops to market faster, students can reach schools more safely, and businesses can transport goods more efficiently. The economic impact of improved infrastructure ripples through entire communities, creating opportunities that extend far beyond smoother pavement.

Minister Agbodza emphasized that prompt payment isn't just about fairness to contractors. It's critical to ensuring future projects can proceed smoothly, as companies gain confidence that the government will honor its commitments.

The settlement represents a fresh start for Ghana's infrastructure development, showing that long-standing problems can be solved with decisive action and financial commitment.