Ghana’s government has secured a €323 million financing package to address persistent water shortages in the northern regions, according to MyJoyOnline. The funding supports the Northern Ghana Water and Sanitation Project, which targets communities in Tamale, Yendi, and Damongo. The initiative is designed to provide safe drinking water and improve sanitation for nearly 1.5 million residents while enhancing climate resilience in the area.
Finance Minister Dr Cassiel Ato Baah Forson announced the deal during the 2026 International Monetary Fund and World Bank Group annual meetings in Bangkok. The package includes a €225 million highly concessional facility from the European Investment Bank, a €68 million grant from the European Commission, and a €30 million grant from the Dutch government’s Invest International initiative. President John Mahama confirmed the funding on Monday, noting that the European Union had approved the terms and that work would commence shortly.
The European Investment Bank estimates that the project will improve access to safely managed drinking water for approximately 1.349 million people in the Greater Tamale area. An additional 105,000 residents in Damongo, including urban and peri-urban populations, are also expected to benefit. To prepare for the project, a baseline water quality assessment was conducted in January 2026 on the White Volta River, which serves as a key water source. The study found that while the river’s chemical characteristics were within national and World Health Organization limits, physical parameters such as turbidity and suspended solids exceeded guideline values, necessitating conventional treatment processes including filtration and disinfection.
In the interim, President Mahama stated that the government has financed the replacement of old pumps at existing water works. He indicated that by November, new pumps will begin operating, which will increase water supply in Tamale before the full European Union project is completed. The financing structure combines long-term concessional loans with direct grants to ensure sustainable infrastructure development in the Northern and Savannah regions.