Bridging Ghana’s Development Financing Gap: UNDP and Partners Chart a Bold Path

May 9, 2025

Participants listening intently during a conference, with water bottles on the tables. — Some participants during the SDG Financing Dialogue.

In a strategic effort to mobilize sustainable financing for national development, the United Nations Development Programme (UNDP), in collaboration with Ghana’s Ministry of Finance, convened a high-level Financing for Development Dialogue in Accra. The event featured the official presentation of Ghana’s Development Finance Assessment (DFA) and Integrated National Financing Framework (INFF), both of which offer a roadmap for realigning the country’s financing systems with its Sustainable Development Goals (SDG) ambitions.

The Dialogue brought together key stakeholders from government, civil society, development partners, the private sector and academia to explore actionable strategies for closing Ghana’s growing development financing gap, estimated at between USD 60–70 billion by 2030. Discussions centered on how to mobilize, align, and manage diverse sources of financing (domestic, international, public, and private) in a coordinated and sustainable way to meet national priorities.

Delivering the opening remarks, Mr. Niloy Banerjee, UNDP Resident Representative in Ghana, underscored the urgency of transitioning from traditional development financing to approaches that are more inclusive, innovative, and integrated. While acknowledging Ghana’s progress on its development path, he stressed that achieving the SDGs by 2030 requires not just additional funding, but also more strategic, equitable, and efficient use of existing resources.

“We must innovate, integrate, and mobilize financing that is inclusive, equitable, and sustainable. The Development Finance Assessment gives us a clearer picture of the opportunities ahead,” he said.

A man in a blue vest speaks at a podium during a conference about sustainable finance. — Mr. Niloy Banerjee, UNDP Resident Representative in Ghana, delivering his opening remarks at the SDG Financing Dialogue.

In his keynote address, Hon. Thomas Nyarko Ampem, Deputy Minister of Finance, reaffirmed the government’s strong commitment to operationalizing the INFF as a key vehicle for coordinating all sources of finance. He emphasized that bridging the financing gap is not simply about mobilizing more resources, but about using what is available more effectively, transparently, and in ways that generate measurable results.

“The Integrated National Financing Framework offers us a strategic opportunity to mobilize and align all available resources—public, private, domestic, and external—for sustainable development. It is not just about finding more money, but about using what we have more effectively and transparently to deliver results for our people,” he stated.

A speaker gestures while addressing an audience, with a banner in the background. — Hon. Thomas Nyarko Ampem, Deputy Minister of Finance, delivering his keynote address at the SDG Financing Dialogue.

The Development Finance Assessment, presented by lead consultant Dr. Kwame Agyire, offers a detailed analysis of Ghana’s financing landscape and outlines six strategic pillars to strengthen the country’s capacity to fund its development priorities. These include expanding the tax base, particularly within the informal sector; strengthening property tax systems and sub-national revenue collection; and improving the efficiency of tax incentives. The assessment also recommends integrating SDG targets into the national budgeting process, enhancing transparency in public spending, and expanding access to affordable long-term credit for micro, small, and medium enterprises (MSMEs), especially those led by women and youth.

To diversify funding sources, the assessment proposes the introduction of innovative financing instruments such as green bonds, diaspora bonds, and SDG-linked financing. It also advocates for aligning official development assistance (ODA) with national priorities, improving data systems for tracking finance and expenditures, and enhancing coordination between the Ministry of Finance, the National Development Planning Commission (NDPC), and other stakeholders at both national and sub-national levels.

The presentation further highlighted innovative measures to unlock new financing streams. These include lowering the cost of remittance transactions and creating special purpose vehicles to attract diaspora investments into viable SDG-aligned projects, particularly in renewable energy and waste management. The report pointed to the increasing value of long-term pension funds in Ghana—significantly expanded in recent years—and recommended regulatory reforms to channel a portion of these assets into climate-resilient development projects. In addition, it stressed the importance of digitizing tax systems, enforcing compliance, and expanding tax identification to raise Ghana’s tax-to-GDP ratio from 12.5% to 18% in the medium term.

The government’s effort to align public financing with the SDGs was evident in its 2021 budget, which allocated GHS 79.81 billion to SDG 8—promoting decent work and economic growth—demonstrating a clear shift towards mainstreaming sustainable development in national planning.

A panel discussion featuring representatives from government, the private sector, academia, and development organizations delved into how the recommendations from the DFA and INFF could be translated into tangible reforms. Among the key themes were the role of diaspora remittances as a development tool through solidarity funds, the value of inclusive public-private dialogue in shaping fiscal policy, and the critical need for greater transparency and participatory budgeting processes.

Panel discussion with five speakers seated in blue chairs, with a backdrop on sustainable development. — Group photo of panelists at the SDG Financing Dialogue. From left (with microphone): Richard Tweneboah-Kodua, Director of Research and Innovation, National Development Planning Commission; Seth Twum Akwaboah, Chief Executive Officer, Association of Ghana Industries; Angela Yayra Kwashie, Technical Specialist – Local Government Finance, UNCDF; and Evans Asare, Partner, Deal Advisory Unit, KPMG.

With the DFA providing a robust evidence base and the INFF offering a strategic coordination platform, the Dialogue reaffirmed the readiness of stakeholders to pursue bold and inclusive financing reforms. UNDP reiterated its commitment to supporting the Government of Ghana in implementing the INFF through technical assistance, capacity-building, and stakeholder engagement. “The solutions exist. What we need now is the political will, coordinated action, and inclusive partnerships to make it happen,” said Mr. Banerjee in his closing remarks.

The Financing for Development Dialogue and related assessments are supported by the Integrated National Financing Framework (INFF) Facility and funded by the European Union and the Governments of Italy, Spain, and Sweden. UNDP is proud to be a key partner in this important national effort to mobilize the resources needed to build a more inclusive, resilient, and sustainable future for all Ghanaians by 2030.

Participants engaged in discussion at a conference, seated at tables with water bottles. — A participant engaging in the panel discussion during the SDG Financing Dialogue.