Nearly Half of Ghana's Local Assemblies Fail Minimum Financial Management Standards, World Bank Reveals

Nearly half of Ghana's Metropolitan, Municipal and District Assemblies are operating below minimum public financial management standards, the World Bank has disclosed, even as record sums of money flow to the local government level under recent disbursement reforms.

The finding emerged at the launch of a major new assessment—the Sub-National Public Expenditure and Financial Accountability Assessment and Public Financial Management Review—jointly initiated by the Ministry of Finance and the World Bank to evaluate the strengths and weaknesses of financial management systems across all 261 districts.

Progress, But a Widening Gap

World Bank representative Raymond Muhula acknowledged that local assemblies had made genuine strides. Citing the Centre for Local Governance Advocacy's PFM league table, he noted that the average compliance score rose from 22 per cent in 2023 to 56 per cent in 2025.

"That's real progress, all of you will admit," Muhula said. "But it also tells us that nearly half of MMDAs still fall short of the minimum benchmark. Procurement planning, financial reporting, internal audits, and follow-up on audit findings remain weak."

The league table data, prepared by the Centre for Local Governance Advocacy with European Union support, shows that while 153 assemblies met or exceeded the 50 per cent benchmark in 2025—up from just 12 in 2024—a substantial minority remain mired in poor compliance . External audit emerged as the weakest area, with only 43 per cent of assemblies attaining the benchmark, alongside persistent deficiencies in records management, risk management, and the implementation of audit recommendations .

A Surge in Resources, A Question of Capacity

The assessment comes at a critical juncture. Transfers from the District Assemblies Common Fund to MMDAs have surged from approximately GH₵390 million in 2024 to more than GH₵5 billion following recent reforms to the disbursement system . The dramatic increase in resources has intensified scrutiny of whether local assemblies possess the systems and capacity to account for them.

"It's a major shift in how public money is managed at the local level," Muhula said. "So we need to find out what are the systems, what are the mechanisms that are safeguarding the management of these resources" .

The new assessment will include 10 sub-national PEFA evaluations alongside a broader public financial management report covering all 261 districts, examining revenue mobilisation, expenditure management, procurement, payroll, and the predictability of central government transfers. It marks the first major update since the last sub-national PEFA assessment in 2012 .

Government Reaffirms Commitment

Speaking on behalf of the Finance Minister, the Ministry's Chief Director, Dr. Patrick Nomo, reaffirmed the government's commitment to transparency and accountability in the management of public resources at the local level.

The assessment is expected to produce a roadmap for addressing persistent weaknesses, with the ultimate aim of improving fiscal discipline, strengthening accountability, and ensuring that public resources deliver better outcomes for communities.

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Background: A Decade of Diagnosis

The weaknesses identified are neither new nor surprising. Ghana's local government system has long struggled with financial management capacity, and the PFM league table—now in its third edition—was designed precisely to name and shame underperformers while rewarding progress. The 2025 rankings placed Bia East District Assembly in the Western North Region at the top with a score of 94.5 per cent, while Nsawam Adoagyire Municipal Assembly languished at the bottom with just 8.5 per cent .

The disparities are stark. A well-performing assembly like Bia East demonstrates that compliance is achievable; the challenge lies in replicating that discipline across 260 others. The Centre for Local Governance Advocacy has urged every MMDA to prepare time-bound compliance improvement plans, stressing that the league table is intended to promote improvement rather than punish poor performers .

Parliament's Public Accounts Committee Chairperson, Abena Osei-Asare, offered a blunt diagnosis at the league table's launch in July: "It is not the case that the laws are not adequate; they are very adequate but compliance is weak" .

With the World Bank's assessment now underway, the evidence gathered over the coming months will determine whether Ghana's local assemblies can convert unprecedented resources into accountable, effective service delivery—or whether the gap between funding and capacity will continue to widen.