Ghana's Local Government Minister Nominee Proposes Tech System to Boost Property Rate Revenue

Ghana's nominee for Minister of Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, has outlined a plan to revolutionize local revenue generation by introducing a technology-driven system for property rate collection. Ayariga stated that this initiative could unlock an estimated GH¢20 billion annually, significantly enhancing the financial capacity of Metropolitan, Municipal, and District Assemblies (MMDAs).

Ayariga, who also serves as the Member of Parliament for Bawku Central, presented his proposal during his vetting by Parliament’s Appointments Committee. He highlighted that the existing revenue potential for the assemblies is enormous but largely untapped. The 1992 Constitution envisioned these assemblies as largely self-financing, with the District Assemblies Common Fund intended primarily for development. However, Ayariga noted that this objective has not been fully realized due to the failure of many assemblies to exploit their revenue streams, which include property rates, basic rates, market tolls, and lorry park fees.

To address this, Ayariga proposed establishing a nationwide infrastructure to accurately identify, describe, and value all ratable properties. He explained that the current street naming and property addressing system only locates properties but lacks the detail needed for effective taxation. The proposed system would enable assemblies to levy appropriate rates and ensure greater transparency and accountability in revenue collection, preventing misappropriation.

During the vetting, Ayariga also clarified the role of MPs concerning the District Assemblies Common Fund. Responding to questions, he stressed that MPs are not entitled to the entire fund. Instead, their role is limited to directing the selection of priority projects within their constituencies, using a small allocation within the fund's formula. The assembly itself manages procurement, engages contractors, and handles payments upon project completion and certification, ensuring the funds remain under the assembly's control.

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The MP's only role is in directing which project to do with the small amount, not that the money is given to the MP.