New law to empower MMDCEs access capital markets in the offing-Minister

Ghana’s Minister for Local Government, Chieftaincy, and Religious Affairs, Ahmed Ibrahim, has announced plans to introduce the Local Government (District Assemblies Borrowing) Act, which would give local governments access to capital markets and promote public-private partnerships (PPPs).

He noted that this initiative will also enable MMDAs to raise capital for development projects and reaffirmed the government’s determination to revamp property taxation as a key driver for local revenue generation and sustainable urban development.

Speaking at a stakeholder workshop hosted by the African Cities Research Consortium (ACRC) in partnership with the Local Governance Network (LoGNet), the minister highlighted the immense but largely untapped potential of property tax to transform the financial landscape of Metropolitan, Municipal, and District Assemblies (MMDAs).

He cited persistent challenges—including outdated valuation rolls, incomplete property databases, weak enforcement, and public mistrust—as barriers to effective implementation. Structural bottlenecks such as unclear institutional mandates between central and local authorities, limited technical expertise, outdated technology, and political interference were also flagged.

Currently, the Ghana Revenue Authority (GRA) oversees property tax collection—a move introduced by the previous administration to centralise oversight. However, Mr. Ibrahim explained that this system diluted the financial independence of MMDAs and stifled their capacity to mobilise local revenue effectively.

Referring to Section 144 of the Local Governance Act, 2016 (Act 936), the Minister said the original legislative intent was for MMDAs to directly manage property tax collection. Under the government’s new "Resetting Agenda," plans are underway to return this mandate to the local level, alongside dedicated training, technical assistance, and infrastructure support.