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Introduction
An investigative report by The Fourth Estate, an independent media outlet in Ghana, has stoked a never-ending debate in the West African country about sole sourcing of government contracts.
The report published on Mar. 24, 2026, highlighted the breach of the promise made by the country’s governing National Democratic Congress (NDC) to reduce sole sourcing in the award of government contracts while in opposition between 2017 and 2024.
The facts of sole sourcing
Sole sourcing of government contracts in Ghana has become highly politicised, with both the NDC and the opposition New Patriotic Party (NPP) taking strong positions. However, the stance of these two dominating political parties often depends on whether they are in power or opposition.
Sole sourcing is a procurement method in which the government, agency, or ministry selects a single contractor directly, rather than inviting several companies to compete.
Under Ghana’s procurement system, competitive tendering is the preferred method of procuring goods and services. The Public Procurement Act, 2013 (Act 663), makes the competitive tendering process the default method because it promotes transparency and value for money. However, sole sourcing is allowed as an exception, not the norm.
According to the country’s procurement guidelines, institutions must justify why only one supplier is suitable and must obtain approval from the Public Procurement Authority (PPA) to use that procurement method.
The Politics – NPP vs NDC
Debates over sole sourcing in Ghana have often taken on a strong political tone, particularly between the NPP and the NDC. Each party has, at different times, advanced arguments shaped largely by whether it is in government or in opposition.
Within the NPP, several figures, including the former President Nana Akufo-Addo and former Vice President Dr Mahamudu Bawumia, criticised the widespread use of sole sourcing, arguing that it creates room for abuse and undermines transparency in public procurement.
While campaigning as the NPP Presidential candidate in 2016, Nana Akufo-Addo announced that the “era of sole sourcing will come to an end.” However, his government was accused of awarding public contracts through sole sourcing, despite having announced its end.
While in opposition, the NDC consistently accused the Akufo-Addo administration here and here of overusing the method and bypassing competitive tendering processes, thereby weakening accountability in the award of public contracts.
But barely two years into government, the NDC has been accused of sole sourcing 81 road contracts worth GH₵73 billion within seven months under President John Dramani Mahama’s flagship programme ‘Big Push,’ despite speaking against the procurement method while in opposition.
The investigative report came barely a month after President Mahama told Ghanaians during his second State of the Nation Address (SONA) that sole sourcing would be used only in exceptional circumstances.
“Mr Speaker, we are bringing legislation to this House to tighten our procurement processes by banning sole-sourced contracts, except in exceptional circumstances,” the President said.
“…in what appears to be a bold and complete disregard and defiance of the President’s vow and promises to the nation, the Ministry of Roads and Highways has literally become a factory for sole-sourced road contracts. The Ministry has been churning out what translates into almost 12 sole-sourced contracts per month,” The Fourth Estate reported.
Meanwhile, the President has requested the Fourth Estate’s investigative report and directed the Ministry of Roads to respond to the allegations.
The Law – what Section 40 of Act 663 says
The legal basis for sole sourcing in Ghana is found in Section 40 of the Public Procurement Act, 2003 (Act 663) (as amended). This provision makes it clear that sole sourcing is not the standard method for awarding public contracts, but rather an exception that may be used only under clearly defined circumstances.
Under Section 40 of Act 663, a public entity may resort to sole sourcing where only one supplier possesses the required expertise or holds exclusive rights to provide the goods or services in question. It is also permitted in situations of urgency, where the time required for competitive tendering would be impractical, as well as during emergencies or disasters that demand immediate action.
Additionally, the law allows sole sourcing where further work must be carried out by an existing contractor to ensure compatibility or continuity, in cases involving specialised or research-based services, and where national security considerations arise.
However, even in these limited situations, the law imposes strict safeguards. The procuring entity must provide proper justification for choosing the sole sourcing method, obtain approval from the Public Procurement Authority (PPA), and demonstrate that the contract offers value for money. These requirements are intended to prevent abuse and ensure that public funds are used responsibly.
In essence, while the law recognises the practical need for sole sourcing in certain situations, it tightly regulates its use. Sole sourcing is therefore permitted, but only within carefully controlled boundaries designed to promote transparency, accountability, and efficiency in public procurement.
The controversy – opinion from experts
The use of sole sourcing in public procurement remains highly controversial, largely because it sits at the intersection of efficiency and accountability. Experts argue that awarding contracts without competitive bidding undermines one of the core principles of procurement, competition.
Private legal practitioner and lecturer at GIMPA Law School, Lom Nuku Ahlijah, has urged caution in the use of sole sourcing, which is permitted under Ghana’s procurement laws.
“The term that the Act uses is single-source procurement… what it means is that whereas you could use a competitive process… You choose a single source, effectively inviting a single company. But if you want to do it, you must do it under certain circumstances and get the approval of the Public Procurement Authority,” he told Accra-based Metro TV.
But policy analyst Professor John Osae-Kwapong has called for a political consensus on procurement practices to address their wider political implications. “Maybe we need to come back to the table and say, ‘You know what, let’s build a political consensus around this,’” he said on Accra-based Joy News.
Despite these concerns, supporters of sole sourcing maintain that it serves important practical purposes. In emergency situations, such as natural disasters or urgent national needs, the time required for competitive tendering may be impractical, making sole sourcing a faster and more effective option.
Conclusion
Sole sourcing is a lawful method of public procurement in Ghana, but it is intended to operate as an exception rather than the norm. The legal framework recognises that there are limited circumstances where competitive tendering may not be practical, and in such cases, sole sourcing provides a necessary alternative. However, expert says that its legitimacy depends not merely on its legality, but also on its practice.
