The government of Ghana is implementing major reforms in the public procurement sector to address significant financial losses, according to Deputy Minister for Finance, Thomas Nyarko Ampem. Speaking at the National Procurement and Supply Conference, Nyarko Ampem referenced findings from the Ghana Institute of Procurement and Supply (GIPS), which estimate that procurement breaches cost the country about GH¢2.36 billion annually.
“Why are we spending more on inefficiencies and infractions than on the most vulnerable in our society? Procurement inefficiencies rob us of opportunities to create jobs and expand access to critical services,” said Nyarko Ampem.
He highlighted several common issues contributing to these losses, including unauthorized procurements, inconsistent evaluations, poor supervision, and vague specifications that favor certain suppliers. He warned that such practices undermine national development efforts and erode public trust.
To address these challenges, the government has amended the Public Procurement Act. The new measures require commencement certificates and budgetary allocations before any central government-funded procurement can proceed. Additionally, a PFM Compliance Division has been established within the Ministry of Finance to enforce compliance through the Ghana Electronic Procurement System (GHANEPS).
Nyarko Ampem also announced that Cabinet is reviewing the Procurement Practising Bill. This proposed legislation aims to professionalize procurement processes, reduce malpractice, and incorporate sustainability and anti-corruption measures. “This legislation is expected to raise standards and give procurement the strategic importance it deserves,” he stated.
The Deputy Minister emphasized that these reforms support President John Mahama’s economic reset agenda and align with initiatives like the 24-Hour Economy Programme, which focuses on boosting local production, promoting green procurement practices, and creating jobs.
He called on procurement professionals to adopt technology solutions, strictly apply existing laws, and prioritize value-for-money approaches. “Every insistence on local content builds industries that can compete across Africa and beyond,” he added.
The conference was held under the theme “Transforming Public Procurement for Sustainable Development: Policies, Practices and Pathways.”