Since the 1980s, Ghana has embarked on a number of reforms aimed at improving the efficiency and effectiveness of service delivery of all public sector institutions. All these reforms however, with the exception of a few were supply driven, not informed by a comprehensive national reform strategy, not effectively coordinated by a central body in a visible manner, and had no linkages to each other.

As a result, although the reform initiatives have made modest improvements, they were unable to achieve the desired transformation in the performance of the public sector. Till date, the public sector has not been able to effectively contribute the needed support to stimulate private sector growth and development for wealth and job creation.

In response, a National Public Sector Reform Strategy (NPSRS), 2018-2023, with the theme: “Delivering for Citizens and the Private Sector,” was developed and launched on 8th August, 2018 by H.E. the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo. The strategy reflects the government’s strong emphasis on the catalytic role of the public sector in private sector growth and development.

A growing private sector supported by an efficient public sector can have a significant positive impact on government’s ability to generate more tax revenue. Hence, a well-functioning public sector with a business-friendly mind-set will foster an enabling environment attractive to and supportive of, both domestic and external investment which can affect the growth of government’s revenue.

The Public Sector Reform for Results Project (PSRRP) partially supports the implementation of Ghana’s National Public Sector Reform Strategy (2018-2023). The development objective of the PSRRP is to improve efficiency and accountability in the delivery of selected services by selected entities. The US$35 million Credit to finance the Public Sector Reform for Results Project (PSRRP) was approved by the Board of Executive Directors of the World Bank on October 23, 2018. The Financing Agreement was signed on November 12, 2018.

Specifically, the PSRRP aims to help sixteen (16) selected agencies improve efficiency and accountability in delivery of key public services to citizens and firms, such as issuance and renewal of passports, vehicle registration and environmental permits, and registration of births and deaths. To incentivize these sixteen entities to improve, disbursement-linked indicators (DLIs) will reward entities which achieve agreed results and improve public accountability. Technical assistance will be provided to strengthen the entities’ capacity to achieve the DLIs.