Ghana revamps health financing after declining global aid

Ghana is boosting domestic resource mobilisation and unleashing potential health financing models to protect its health system from external aid volatility, Deputy Finance Minister Thomas Nyarko Ampem informed a distinguished gathering at the 78th World Health Assembly in Geneva.

Addressing the gathering on “Navigating a New Era of Global and Domestic Health Financing,” Mr Ampem stated that the government is reallocating resources and strengthening collaboration with the private sector, and bringing in systemic budgetary changes to fund health services as donor funding continues to decrease.

Mr Ampem said “External aid is no longer a reliable solution. We must prioritise prevention, repurpose budgets, and unlock new investment through good governance and innovation.”

Ghana’s response comes after an increasing worry across the continent over waning donor support and increasing healthcare funding shortfalls. The World Bank projects that Africa’s health spending per capital is still considerably lower than in other regions, averaging just US$47 compared to more than US$4,000 in high-income countries. Mr Ampem drew to attention that the need for policy alignment around primary health care and preventive services. From January 2025, the government has increase access to nutritious food, immunisation, clean water and sanitation foundational measures he said are more affordable than treating diseases.

That financial dedication is being tested by shifting geopolitical and economic dynamics. Ghana is grappling with the fallout from the sudden removal of US78 million in USAID health support, which had funded malaria, HIV/AIDS and child health programmes. To minimize the impact, the country collaborated with drone logistics firm Zipline to deliver medical supplies without raising public expenditure.

In an attempt to stretch funding, the government has also moved to fully apportion National Health Insurance Levy (NHIL) funds for their intended purpose. This year’s budget increases National Health Insurance Scheme (NHIS) funding to GH¢9.8 billion from GH¢5.9 billion in 2024 — a 66% increase. Over the medium term, Ghana plans to dedicate GH¢49.3 billion to the NHIS, an important increase from the GH¢13.2 billion allocated between 2021 and 2024.

Mr Ampem said “Being responsive to change is critical. We leveraged technology and logistics to close urgent supply gaps and maintain continuity of care.”

As time goes on, Ghana is looking to enhance domestic tax revenues — which in sub-Saharan Africa average just 13% of GDP — through digital governance, resolving leakages and expanding the tax base. It is also urging private sector participation through public-private partnership (PPP) frameworks.

A new Ghana Medical Trust Fund known as  MAHAMACARES — has been introduced to finance treatment for non-communicable diseases not included in NHIS and to attract private and philanthropic financial support for health research.

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