John Dramani Mahama has announced plans to introduce legislation that will significantly restrict the use of sole-source procurement, describing the move as a key step toward restoring fiscal discipline and rebuilding public confidence in state spending.
Delivering his State of the Nation Address in Parliament ahead of Ghana’s 69th Independence Day, the President said sole-source contracts would only be permitted under strictly defined “exceptional circumstances,” marking a decisive policy shift toward competitive tendering across the public sector.
The proposed reform is positioned as part of a broader governance and accountability drive aimed at curbing waste, eliminating inflated contract pricing, and strengthening financial oversight. Ghana has in recent years grappled with concerns over cost overruns, stalled infrastructure projects, and procurement practices that critics say placed additional strain on public finances during a period of debt distress and economic instability.
Mahama told lawmakers that tightening procurement rules would help prevent a repeat of past excesses and ensure greater transparency in the award of public contracts. By limiting sole-sourcing, the administration hopes to open up more projects to competitive bidding, potentially broadening participation among contractors and improving value for money.
However, the shift may also affect project timelines, particularly in sectors such as infrastructure and energy where sole-source arrangements have often been justified on grounds of urgency or specialized technical requirements.
The planned legislation will be complemented by a proposed Value for Money Office Bill, intended to strengthen scrutiny of public contracts and address inflated pricing. In addition, the President indicated that parliamentary approval would be required before any state asset — including land or public enterprises — is leased or divested.
The procurement reforms form part of the government’s “Resetting Ghana Agenda,” which seeks to consolidate gains made after debt restructuring, rein in inflation, and stabilize the cedi. While the policy signals a move toward a more rules-based contracting environment, its overall impact will hinge on how narrowly the term “exceptional circumstances” is ultimately defined when the bill is debated and passed.
By: Bernard Mensah/Planbfmonline.com
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