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DACF in action: How strategic reforms are driving local development across Ghana

Accra, Ghana – The District Assemblies Common Fund (DACF) is taking bold steps to transform local governance and accelerate community development under the leadership of its Administrator, Mr. Michael Harry Yamson. Established under Article 252 of the 1992 Constitution, the DACF channels a minimum of 5% of national revenue to Ghana’s 261 Local Government Authorities (LGAs) to reduce inequities and empower districts to implement priority projects.

Since its formal launch in 1994, the DACF has disbursed over GH¢20 billion to support local development. Yet persistent challenges, including capped funds, weak oversight, low allocations, and delayed releases, have constrained its impact. Under President John Dramani Mahama’s Reset Agenda, the Fund is now implementing major reforms focused on accountability, innovation, partnerships, and sustainability.

 

Four Strategic Imperatives

Maximising Net Transfers to MMDAs:

In 2025, over GH¢4.184 billion was released, with 80% going directly to the 261 assemblies, compared to an average of 53.5% between 2019 and 2023. This ensures that critical projects—such as CHPS compounds, schools, and market infrastructure—receive timely funding.

 

Maximising Grant Revenue and Sustainability:

Beyond constitutional allocations, the DACF is mobilising private-sector resources through initiatives like the Community Partners Fund (CPF) and a dedicated Grants and Sustainability Unit to expand financing for local development.

 

Full Digital Transformation with Intellex:

DACF operations are now fully digitised with the AI-enabled Intellex platform, enhancing transparency, real-time monitoring, and data-driven decision-making. Citizens can now track projects from allocation to completion.

 

Optimising Operations and Governance:

The Fund has streamlined processes, strengthened internal controls, and developed staff capacity to ensure faster, more efficient, and accountable disbursements.

 

Visible Impacts

Already, the reforms are yielding results. Assemblies are using increased net transfers to fund health centres, educational facilities, potable water projects, sanitation drives, and modernised 24-hour markets. The disability component of DACF is set to increase from 3% to 5%, further advancing inclusive development.

 

Looking Ahead

Administrator Yamson has set a target to reduce development inequities by 10% across all indices by 2028. Through these strategic imperatives, the DACF is evolving from a funding mechanism into a transformative engine of citizen-centred local development.

 

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