The Swiss State Secretariat for Economic Affairs (SECO), in partnership with the World Bank, has launched a $3.59 million initiative to strengthen Ghana’s public financial management (PFM).
The agreement, signed on December 3, 2025, aims to address longstanding weaknesses in Ghana’s PFM system by linking core reforms to improved service delivery, leveraging data and evidence for better outcomes, and enhancing the performance and accountability of State-Owned Enterprises (SOEs).
The project is part of SECO’s Ghana Cooperation Program (2025–2028), which seeks to support Ghana in tackling economic and environmental challenges while strengthening the foundations for a resilient and forward-looking economy.
The program focuses on enhanced local governance, inclusive job creation, and environmental sustainability, reflecting the shared values and strong bilateral ties between Ghana and Switzerland, particularly in the financial sector.
Ghana’s PFM has faced significant challenges, with the Ghana Institute of Procurement and Supply (GIPS) reporting that the country loses approximately GH¢2.36 billion annually due to procurement breaches.
These losses deprive critical sectors such as education, health, transportation, and infrastructure of much-needed funding, hindering the government’s ability to implement sustainable development programs.
Although the Public Financial Management Act, 2016 (Act 921), was enacted to address historical deficiencies in public finances and to promote discipline, transparency, and accountability, implementation has often fallen short, creating opportunities for abuse and corruption.
In response, the government has introduced innovative reforms requiring commencement certificates and budgetary allocation prerequisites for all central government-funded procurements.
Furthermore, the Ministry of Finance has established a PFM Compliance Division to enforce adherence through the Ghana Electronic Procurement System (GHANEPS), strengthening oversight and accountability.
This new initiative by SECO and the World Bank underscores the urgent need for sustained reforms in Ghana’s PFM, aiming to safeguard public resources, curb corruption, and channel funding into essential sectors for national development.
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