Local Governance & Decentralization in Ghana

Decentralization is the transfer of administrative, legislative, planning, budgeting, and managerial authority from central government ministries in Accra to local grassroots authorities. • Why Decentralization is Crucial in Ghana: 1. Promotes Grassroots Democracy: Enables local community members to participate directly in decision-making that affects their daily lives. 2. Speedy Development: Local leaders understand their community's unique priorities (e.g. water boreholes vs clinic rehabilitation) better than distant officials. 3. Reduces Bureaucratic Congestion: Citizens do not need to travel to Accra to obtain building permits, birth certificates, or trade licenses. 4. Promotes Accountability: Local leaders live among the people, making them readily answerable for public resources.

Under the Local Governance Act, local authorities are categorized into three levels based on population thresholds: • 1. Metropolitan Assemblies (250,000+ residents): - Established in major metropolitan cities with heavy commercial activity and complex urban challenges. - Examples: Accra Metropolitan Assembly (AMA), Kumasi Metropolitan Assembly (KMA), Sekondi-Takoradi (STMA), Tamale (TMA). • 2. Municipal Assemblies (95,000 to 249,999 residents): - Established for one-town urban centers or concentrated commercial municipalities. - Examples: Cape Coast Municipal, Sunyani Municipal, Ho Municipal, Koforidua (New Juaben South). • 3. District Assemblies (75,000 to 94,999 residents): - Predominantly rural districts composed of dispersed agricultural communities and villages. - Examples: Bongo District, Afram Plains District, Bole District.

A District Assembly brings together both elected citizens and technical administrators: • 1. The District Chief Executive (DCE / MCE / Mayor): - The chief political and executive representative of central government in the district. - Appointed by the President and approved by a vote of at least two-thirds (66.7%) of Assembly members present and voting. - Responsibilities: Oversees day-to-day administration, presides over the Executive Committee, and chairs the District Security Council (DISEC). • 2. The Presiding Member (PM): - Elected by a two-thirds majority of all Assembly members. - Acts as the 'Speaker' of the local assembly, convening and presiding over general assembly sittings. • 3. Elected Assembly Members (70%): - Elected directly by voters in individual electoral areas every four years to represent community concerns. • 4. Government Appointees (30%): - Nominated by the President in consultation with traditional councils and professional associations. • 5. Member of Parliament (MP): - Sits in the Assembly to coordinate national and local policies, but has NO voting rights. • 6. Unit Committees: The lowest grassroots tier in every village/suburb, mobilizing communal labor and monitoring local sanitation.

To build infrastructure and provide sanitation services, assemblies rely on two main revenue streams: • 1. Internally Generated Funds (IGF): Revenue mobilized directly within the territorial jurisdiction of the assembly: - Rates: Property rates on houses, commercial buildings, and factories. - Fees and Charges: Market tolls paid by market traders, lorry park entry fees, and public toilet fees. - Licenses and Permits: Business operating permits, liquor licenses, and building construction permits. • 2. District Assemblies Common Fund (DACF): A constitutional fund established under Article 252 of the 1992 Constitution. - Central government allocates not less than five percent (5%) of total national domestic tax revenue into the DACF. - Distributed quarterly to all MMDAs according to an equitable formula approved by Parliament. - Used to build schools, clinic blocks, mechanize water boreholes, and support persons with disabilities (PWDs).