Ghana will introduce legislation banning most sole-source procurement contracts in the public sector as part of sweeping reforms aimed at tackling corruption and improving value for money in government spending, President John Dramani Mahama announced Thursday.
Speaking during his State of the Nation Address, Mahama said sole-sourcing would only be permitted under exceptional circumstances once new procurement rules are enacted.
“We are bringing legislation to tighten our procurement processes by banning sole-source contracts,” he told parliament.
The measure forms part of broader governance reforms designed to curb inflated contracts, abandoned projects and persistent cost overruns that have historically strained public finances.
Mahama said weak procurement oversight contributed significantly to Ghana’s past fiscal crises and rising public debt.
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Alongside the ban, government will require prior parliamentary approval before any state asset, land or enterprise can be leased or sold.
The administration has also introduced the proposed Value for Money Office Bill, intended to independently assess major public expenditures before contracts are executed.
“This is designed to decisively end waste,” Mahama said.
The president framed the reforms as essential to rebuilding public trust following years of economic hardship linked to financial mismanagement.
Ghana recently emerged from a prolonged debt restructuring process after defaulting in 2022, forcing authorities to adopt tighter fiscal controls.
Mahama said preventing procurement abuse was critical to ensuring that economic recovery gains are not reversed.
“All these measures are intended to improve public trust and accountability,” he said.
Governance analysts say procurement reforms could significantly reduce public spending inefficiencies if fully implemented, though enforcement will remain key.
Mahama argued that sustainable development depended not only on economic growth but also on transparent management of public resources.
“A nation that does not learn from past mistakes cannot escape cycles of hardship,” he told lawmakers.
The proposed reforms are expected to be debated in parliament in the coming months as part of the government’s wider economic stabilisation agenda.
