Ghana needs an estimated $37 billion annually to close its infrastructure deficit and support sustainable urbanisation through 2047, the World Bank said. The lender warns that flooding, housing shortages, traffic congestion and weak urban infrastructure could undermine productivity and economic growth as the country’s cities expand rapidly. This figure was presented at the ninth Ghana Urban Forum in Accra, where the government launched a new National Urban Policy aimed at improving housing, transport, waste management and climate resilience.
Ghana’s Urban Expansion
The estimate, drawn from Ghana’s Infrastructure Plan, highlights the scale of investment required, something that is, for lack of a better word, quite a lot. Ghana has become one of the most urbanised countries in Sub-Saharan Africa, with 57% of its population now living in cities and towns. This demographic shift is accelerating, as the figure is expected to more than double by 2050.
Madhu Raghunath, Urban Resilience and Land Practice Manager at the World Bank, said the nation faces a “huge infrastructure gap.” She identified flooding, inadequate housing, poor waste management and traffic congestion as the country’s most pressing urban challenges. The lack of proper planning means these issues are not isolated incidents but systemic failures affecting the daily lives of millions.
The Cost of Inaction
In Accra alone, average annual flood-related losses to assets are estimated at more than $20 million. This is among the highest levels in Sub-Saharan Africa, highlighting the severity of the drainage and water management failures in the capital. The economic damage from these events is significant and cuts into the resources available for other development projects.
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Beyond the floods, the housing crisis is worsening. The number of people living in slums increased from 5.5 million in 2017 to 8.8 million in 2020, according to the World Bank. This rapid growth in informal settlements outpaces the ability of local authorities to provide basic services like water and sanitation, creating dangerous living conditions for a growing segment of the population.
The lender also warned that inadequate waste collection and disposal systems are worsening pollution and climate-related risks. It said 38% of urban households dispose of waste through uncontrolled dumpsites, while 23% rely on open burning. These practices contribute to environmental degradation and pose health hazards to residents living near these sites.
When city populations swell faster than new housing or transit lines can be built, informal settlements often become the default solution. This scenario creates a pressure on water systems that the current infrastructure cannot handle, increases the likelihood of disease outbreaks, and strains municipal budgets that are often designed for smaller populations. The infrastructure gap is therefore a stability risk as much as it is an economic one.
Mobilising Finance and Policy
Raghunath called for coordinated investment across transport, power, housing and waste infrastructure. She emphasized the need for stronger municipal institutions, improved urban planning and greater use of public-private partnerships to mobilise long-term financing. Without these structural changes, the rapid urban expansion could lead to a cycle of inefficiency and urban decay.
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She said well-planned cities are essential to Ghana’s economic agenda because they reduce business costs, improve labour mobility and expand access to jobs and public services. The government has responded with a new policy aimed at promoting inclusive urban development, affordable housing, improved mobility, climate resilience and stronger local governance.
Local Government, Chieftaincy and Religious Affairs Minister Ahmed Ibrahim said the policy is intended to improve conditions in informal settlements while preventing the formation of new slums, and urged local authorities to integrate the framework into development plans and budgets. This move signals a shift toward formalising the informal economy, which is a major component of Ghana’s urban setting. Without formal recognition, these communities often remain invisible to planners, leading to the neglect of essential services.
The World Bank’s estimate highlights the scale of the urban infrastructure challenge. Sustained investment in transport, housing, drainage and municipal services will be critical to maintaining economic productivity and improving living standards over the coming decades.
