By Adnan Adams Mohammed
In a landmark move to modernize the management of public funds, the Government of Ghana has announced a total transition to digital payments, effectively ending the use of manual cheques across all state institutions by the end of this year.
The reform was formalized on Tuesday with the signing of a Service Level Agreement (SLA) designed to integrate the nation’s core financial systems. The agreement links the Ghana Integrated Financial Management Information System (GIFMIS) and the Electronic Funds Transfer (EFT) platform with the Ghana Interbank Payment and Settlement Systems (GhIPSS).
Under this new framework, GhIPSS becomes the sole authorized channel for all government payments, creating a unified and traceable electronic ecosystem. Speaking at the signing ceremony in Accra, the Controller and Accountant-General, Mr. Kwasi Agyei, characterized the move as a decisive departure from an era of inefficiency.
“This agreement is not just ceremonial; it signifies a fundamental shift in the handling of public funds,” Mr. Agyei stated. “We are moving decisively from outdated manual systems to a modern, controlled, and fully traceable electronic payment system.”
He highlighted that manual cheques have historically been slow, difficult to reconcile, and susceptible to misuse.
The new integrated system will allow for secure, real-time electronic transfers to suppliers and third parties across the entire banking sector.
Efficiency and Accountability
The reform is mandatory for all Ministries, Departments, and Agencies (MDAs), as well as Metropolitan, Municipal, and District Assemblies (MMDAs).
Deputy Finance Minister Thomas Ampem Nyarko emphasized that the transition is anchored on three pillars: accountability, efficiency, and control.
He revealed that the digital system has already proven its worth; existing controls reportedly blocked over one billion Ghana cedis in unauthorized vehicle purchases last year.
“Agencies will be rolled on week by week until the process is complete,” Mr. Nyarko explained. “We are doing this alongside the automatic withdrawal of manual cheques.”
He further hinted that Finance Minister Dr. Cassiel Ato Forson is expected to formally announce the total withdrawal of manual cheques in the upcoming budget statement, cementing the year-end deadline.
Strengthening Fiscal Discipline
The Head of Civil Service, Dr. Aggrey Darko, urged all public servants to embrace the change, noting that better governance is impossible without modernizing transaction methods.
The initiative aligns with recent amendments to the Public Financial Management Act, which introduced stricter commitment controls. By integrating these systems, the government can now monitor expenditures in real-time, ensuring that no public spending is committed without prior approval and available budget.
As the countdown to the December deadline begins, the transition marks one of the most significant steps in Ghana’s broader strategy to enhance fiscal discipline and eliminate leakages in the public sector.
