Following the devastating floods on Tuesday, 30th June, in Accra, President John Dramani Mahama directed the Minister for Finance to release GH¢300 million from the Contingency Fun
The report indicates that following the devastating floods on Tuesday, 30th June, in Accra, President John Dramani Mahama directed the Minister for Finance to release GH¢300 million from the Contingency Fund: GH¢150 million for emergency relief and GH¢150 million for mitigation works. Hours later, on the floor of Parliament, the Minister for the Interior announced a different figure: GH¢350 million, comprising GH¢200 million for relief and GH¢150 million for flood control.
It further notes that the difference in figures may eventually be clarified. However, it raises broader public financial management questions. Were these allocations drawn from an already established financing framework, or were they being determined as the scale of the disaster became evident? More importantly, what informed the decision on the amount required? Was it based on preliminary damage assessments, historical expenditure, estimated recovery needs or an existing financing model? Beyond the amount itself, what strategy will guide the use of these resources to ensure they achieve both immediate relief and longer-term resilience?
These questions should not diminish the speed of government’s response. The President visited affected communities, expressed sympathy for families who lost homes and livelihoods, and directed immediate support. NADMO, together with the military and police, mobilised quickly to rescue residents trapped by floodwaters. These interventions undoubtedly saved lives and deserve recognition.
At the same time, this moment presents an opportunity to ask a broader question. Why, in 2026, does Ghana continue to finance one of its most predictable disasters primarily through emergency contingency releases?
Section 36(1) of Ghana’s Public Financial Management Act, 2016 (Act 921) allows advances from the Contingency Fund only where Parliament’s finance committee is satisfied that an urgent or unforeseen need for expenditure has arisen, one for which no other budget provision exists to meet it.
That distinction is becoming increasingly important. June 2026 has recorded the highest monthly rainfall in Ghana’s history, surpassing previous records set in 2002 and later in 2015. Severe flooding has become a recurring feature of Ghana’s rainy season, particularly in Accra, where drainage constraints, rapid urbanisation and changing climate patterns continue to increase vulnerability.
The fiscal response has also become familiar. Following major flooding events, government mobilises emergency financing, relief items are distributed, mitigation works are announced and renewed commitments are made to pursue permanent solutions. While these interventions remain necessary, their recurring nature suggests that flooding is no longer an unforeseen event but an increasingly predictable fiscal risk.
The 2026 Budget Statement itself illustrates this reality. NADMO supported 173,800 disaster victims in 2025, more than four times its original planning target. It also undertook the dredging of 255 drains as part of flood mitigation efforts. These are not the activities of an institution responding to isolated disasters; they reflect an agency managing a recurring national risk.
The budget composition tells a similar story. NADMO’s approved allocation for 2026 amounts to GH¢409.4 million, of which approximately 96.6 per cent is allocated to compensation for employees. Only GH¢14 million is linked directly to strengthening resilience to climate-related hazards and disasters, with GH¢8.3 million allocated specifically for emergency works.
When compared with the GH¢300-350 million released this week on 2nd July through the Contingency Fund, an important policy question emerges. Should predictable flood risks continue to rely primarily on emergency financing, or should operational preparedness and resilience receive greater attention during the annual budget process?
The President recently reminded Ghanaians of the proverb about the vulture that waits for the rains to end before repairing its roof. The message was directed at the importance of preparedness. It is equally relevant to public financial management. As flooding becomes increasingly predictable, our budgeting systems must also evolve from reacting to disasters towards preparing for them.
During COP28 in Dubai, I participated in discussions where this exact issue featured prominently, the shift from ex-post humanitarian response towards ex-ante climate risk financing.
The establishment of the Loss and Damage Fund reflected growing recognition that climate-vulnerable countries should not always have to mobilise resources after disasters occur. Increasingly, countries are adopting forecast-based financing, parametric insurance and regional risk financing mechanisms that release funds once agreed climate thresholds are triggered. Ghana has already begun moving in this direction.
The 2026 Budget Statement confirms that government has secured sovereign drought insurance through the African Risk Capacity to protect vulnerable farmers during the 2025/2026 farming season. It also announces plans to introduce a Parametric Flood Insurance Scheme for the Greater Accra Metropolitan Area to provide rapid support to approximately 1.2 million vulnerable residents. These are encouraging developments because they represent the very type of anticipatory financing that climate adaptation increasingly requires.
