By: Benjamin Nii Nai Anyetei
Ghana’s universities are coming under growing financial pressure as rising enrolment, increasing operational costs, technological transformation and the expanding demand for research and innovation expose the limitations of the country’s traditional higher education funding model.
For decades, universities have relied largely on government support, student fees and other conventional sources of funding to finance teaching, research and infrastructure.
However, education leaders say the changing demands on tertiary institutions require Ghana to rethink how universities are financed if quality education is to remain accessible and institutions are to achieve long-term financial sustainability.
The issue formed the backdrop to the inaugural Ghana Higher Education Summit, hosted by the University of Ghana under the theme, “Universities at Crossroads: Charting Sustainable Funding Pathways for Inclusive Higher Education.”
The summit brought together policymakers, university leaders, researchers, industry representatives, development partners, alumni and students to examine the financial challenges facing higher education and explore alternative funding pathways.
Deputy Minister of Education, Dr Clement Apaak, said universities occupy a critical position in Ghana’s development because they produce the human capital, research, innovation and leadership needed to advance the country.
He said the difficulty, however, is that universities are being required to do more at a time when public resources are constrained.
Dr Apaak said growing enrolment, rising expectations for research and innovation, rapid technological change and increasing operational costs are placing new demands on higher education institutions.
He therefore called for Ghana to move beyond traditional funding arrangements and explore innovative and collaborative ways of financing universities.
Dr Apaak reaffirmed government’s commitment to strengthening tertiary institutions and improving their ability to compete globally.
Funding challenge extends beyond Ghana
Vice-Chancellor of the University of Ghana, Professor Nana Aba Appiah Amfo, said the financing challenge has become a critical issue for universities across the world.
She said governments are facing competing demands on public resources, while universities are simultaneously expected to expand access, improve research, deepen digital transformation and provide greater support for students.
Professor Amfo said the responsibility for financing higher education must therefore be shared among government, universities, industry, philanthropists, alumni, students and society.
She said the University of Ghana established the summit to provide a platform for dialogue, evidence-based decision-making and the development of practical solutions to the funding challenges confronting higher education.
According to her, the summit is expected to develop into an ongoing national platform rather than remain a one-off event.
Rising demand putting pressure on universities
Former Vice-Chancellor of the University of Ghana, Emeritus Professor Ernest Aryeetey, said the financial pressure on universities is partly a consequence of the growing demand for higher education.
He said young people are increasingly seeking university education for better employment prospects, higher earning potential, personal development and social mobility.
At the same time, he said Ghana’s transition towards a knowledge-based economy is increasing demand for highly skilled workers.
Professor Aryeetey said technological advancement is also forcing universities to modernise teaching, research and infrastructure, while research itself is becoming increasingly expensive.
He warned that students from poorer households are particularly vulnerable under the existing funding model.
Some, he said, struggle to pay academic and residential fees, while others are forced to abandon their studies because of financial constraints.
He cautioned that the situation could deepen social and economic inequalities if students from wealthier backgrounds continue to have greater capacity to finance their education.
According to Professor Aryeetey, the consequences extend beyond individual students because inadequate access to higher education could contribute to shortages of professionals in critical areas including teaching, healthcare, engineering, technology and hospitality.
Government resources also under pressure
Professor Aryeetey said the existing funding structure is also under strain because government must finance several other priority sectors, including healthcare, social protection and security.
Citing the 2025 Annual Report, he said about 67.2 percent of education funding came from government, while only 0.11 percent came from development partners.
He said most African countries spend between 10 and 15 percent of their education budgets on tertiary education, compared with about 25 percent in Europe and North America.
In Ghana, he said, the tertiary education sector received about 27 percent of the education budget in 2025, compared with 26 percent in 2024.
Professor Aryeetey said that despite these allocations, universities continue to face financial gaps, with some public institutions resorting to borrowing from corporate financial institutions.
He also raised concerns about the implications of funding arrangements, including the Ghana Education Trust Fund (GETFund), for institutional autonomy and universities’ ability to determine their own development priorities.
Call for diversified funding
Professor Aryeetey said Ghana must move towards a diversified funding model instead of relying heavily on a single source.
He proposed a combination of government support, grants, philanthropy, performance-based financing, partnerships, crowdfunding, research commercialisation and university entrepreneurship.
He said government must continue providing strong support for critical areas such as healthcare, agriculture, engineering, teacher education and scientific research.
However, some public funding, he suggested, could be linked to measurable outcomes including graduation rates, research productivity, graduate employability and innovation.
Professor Aryeetey also encouraged universities to generate more revenue from their expertise through research commercialisation, technology transfer, intellectual property, consultancy services, short courses, online programmes and industry-based training.
He said university agricultural and other production units could also be expanded to generate income through the commercialisation of products and services.
The discussions at the summit therefore placed the financing of higher education within a wider national development challenge: how Ghana can expand access to university education, maintain quality, support research and innovation, and keep institutions financially resilient without placing an unsustainable burden on government or students.
The University of Ghana says the summit is expected to produce practical strategies to strengthen the competitiveness and long-term sustainability of Ghana’s higher education sector.
