Universities urged to diversify funding as pressure mounts on traditional model

Ghana's universities are grappling with financial strain as enrollment grows, operational costs rise, and the demand for research and innovation intensifies. For years, these institutions have been reliant on government support, student fees, and conventional funding sources. However, experts argue that the evolving needs of tertiary institutions necessitate a reevaluation of their financing mechanisms to ensure quality education remains affordable and institutions achieve long-term financial stability.

The inaugural Ghana Higher Education Summit, organized by the University of Ghana, aimed to address this pressing issue. The summit, themed "Universities at Crossroads: Charting Sustainable Funding Pathways for Inclusive Higher Education," gathered policymakers, university leaders, researchers, industry representatives, development partners, alumni, and students. They examined the financial hurdles facing higher education and explored alternative funding avenues.

Deputy Minister of Education, Dr. Clement Apaak, emphasized the crucial role universities play in Ghana's development, producing human capital, research, innovation, and leadership. He highlighted the challenge of universities being required to do more while public resources are limited. He called for Ghana to move beyond traditional funding arrangements and explore innovative and collaborative ways of financing universities.

The Vice-Chancellor of the University of Ghana, Professor Nana Aba Appiah Amfo, echoed this sentiment, stating that the financing challenge is a global issue for universities. She emphasized the need for a shared responsibility in funding higher education among various stakeholders, including government, universities, industry, philanthropists, alumni, students, and society.

Former Vice-Chancellor of the University of Ghana, Emeritus Professor Ernest Aryeetey, explained that the financial pressure on universities stems partly from the increasing demand for higher education. As young people seek university education for better employment prospects and personal development, Ghana's transition to a knowledge-based economy is driving demand for skilled workers.

Technological advancements are also pushing universities to modernize teaching, research, and infrastructure, while research itself is becoming increasingly expensive. He cautioned that financial constraints could deepen social and economic inequalities, particularly for students from poorer households who struggle to pay fees or abandon their studies due to financial difficulties.

Professor Aryeetey also noted that the existing funding structure is strained as the government must finance other priority sectors such as healthcare, social protection, and security. According to the 2025 Annual Report, government funding accounts for 67.2% of education funding, while development partners contribute only 0.11%.

Despite these allocations, Ghana's tertiary education sector received only 27% of the education budget in 2025, compared to 26% in 2024. Some institutions even resort to borrowing from corporate financial institutions to bridge the funding gaps.