The Purpose and Constitutional Foundation of the DACF
The District Assemblies Common Fund (DACF) was set up toadvance decentralisation in Ghana and address the challenges most Local Government Authorities (LGAs) face in generating their own revenues to meet financial commitments.
The Fund established under Article 252 of the 1992 Constitution, was created to channel a minimum of 5% of national revenue to Ghana’s 261 LGAs through a formula prepared by the Administrator, in order to reduce inequities and accelerate grassroots development. Thus, it serves as a developmental facility, channeling resources to LGAs to enable them to plan and implement programmes and projects within their jurisdictions.
Historical Milestones and Persistent Challenges
Since operations formally began in Accra in 1994, following the assent to the District Assemblies Common Fund Act 1993 (Act 455) by the First President of the Fourth Republic, the late former President Jerry John Rawlings, the DACF has disbursed over 20 billion Ghanaian cedis to transform lives. Successive legislation, culminating in the Local Governance Act 2016 (Act 936), has further strengthened its role in Ghana’s decentralised local governance system. However, over the years, the Fund’s impact has been gradually constrained by persistent challenges including the capping of earmarked funds, weak oversight mechanisms, low annual allocations to LGAs, and chronic delays in releases.
A Renewed Commitment Under the Reset Agenda
As Ghana, under the leadership of His Excellency President John Dramani Mahama, seeks to restore trust in public institutions such as the DACF under his Reset Agenda, the Fund is now stepping forward with a clear roadmap to bolster local governance, which translates into visible progress and tangible results at the community level.
The Administrator, Mr Michael Harry Yamson after being sworn in on 25th March 2025 by President Mahama has embarked on major reforms intended to refocus the Fund’s efforts on accountability, innovation, strategic partnerships, and sustainability in local governance financing. Through digital transformation, evidence-based decision-making, and an unprecedented flow of funds from the central government, the DACF is strengthening its institutional framework to deliver its core mandate: ensuring equitable access to national resources for all communities. At the heart of this renewed drive are four strategic imperatives introduced by Mr Yamson. These practical measures are designed to channel more resources, introduce better systems, and promote accountability at the local level.
Strategic Imperative 1: Maximising Net Transfers to MMDAs
The first strategic imperative is to maximise net transfers to MMDAs across the country, ensuring that the largest possible share of funds reaches the districts directly. In 2025, this principle saw more than GH¢4.184 billion released, with an unprecedented 80% going straight to all 261 Assemblies, compared to an average of 53.5% between 2019 and 2023 and less than 10% in 2024. The breakdown for 2025 was as follows: GH¢987,965,073 in the first quarter; GH¢1,831,229,137 in the second quarter; and GH¢1,486,152,051 in the third quarter, with the fourth quarter tranche of GH¢1,433,435,752.08 brings the total 2025 disbursement to assemblies to GH¢5,738,781,013.08.Research shows that when more funds flow directly to the districts, they can complete critical life-changing projects whether Community-based Health Planning Services (CHPS) compounds in the Northern regions, school blocks in the Volta Region, or market infrastructure under the 24-Hour Economy initiative across every part of the country. This imperative directly addresses one of the most common complaints from district chief executives and local government experts: that “too much money never leaves Accra.”
Strategic Imperative 2: Maximising Grant Revenue and Sustainability
The second imperative is to maximise grant revenue and contribute to DACF fiscal operations. Beyond its constitutional allocation, the Administrator is proactively seeking additional grants and partnerships. Recent initiatives include the planned Community Partners Fund (CPF), which will mobilise private-sector resources for the construction of hospitals, schools, and various community projects. A new Grants and Sustainability Unit has also been established with a clear mandate to engage development partners and mobilise private-sector financing for LGAs. The objective is clear: to transform the DACF into a catalytic financing platform capable of crowding in additional capital for local development, thereby expanding the overall resource envelope and enabling Assemblies to achieve more.
Strategic Imperative 3: Full Digital Transformation with Intellex
The third imperative is to integrate, digitise, and digitalise all DACF financial management, fiscal operations, and monitoring and evaluation activities. For too long, paper-based systems and delayed reporting have undermined local government. In this modern era, institutional credibility depends heavily on data integrity, precision, transparency, and real-time oversight. This strategic imperative brings to bear a digital revolution: full integration of financial systems, real-time dashboards, and electronic monitoring ensuring that every cedi can be tracked from release to project completion. In 2025, the DACF introduced the Intelligent Expenditure Platform, known as Intellex. This AI-enabled digital system manages allocations, disbursements, monitoring, and reporting, and will also enable the DACF to produce a more swift and equitable formula to accelerate development and bridge the gap between urban and rural communities. From January 2026, all DACF operations have transitioned fully into this digital environment. This strategy is fundamental to governance reform that strengthens trust in decentralised fiscal management. Assemblies will now submit reports through Intellex, greatly reducing opportunities for misapplication and allowing citizens to follow projects through all stages in their own communities. In an era when Ghanaians rightly demand transparency, Intellex is the game-changer that builds public trust.
Strategic Imperative 4: Optimising Operations and Governance
The fourth and final imperative is to optimise DACF operations, structure, and governance architecture. This focuses on streamlining the Fund’s internal processes through restructuring, developing staff capacity, reducing bureaucracy, strengthening internal controls, and ensuring swift disbursement. The goal is simple: faster decisions, greater efficiency, and fewer errors. This imperative builds critical relationships with the Ministry of Local Government, Chieftancy and Religious Affairs (MLGCRA), Parliament, Ministry of Finance, and other stakeholders.
Visible Impacts and Inclusive Progress
These four imperatives are already producing visible results on the ground. In 2025 and 2026, Assemblies are using increased net transfers to fund priority projects under the government’s Resetting Agenda. Existing health facilities are receiving critical equipment, new health centres are being constructed, modernised 24-hour markets are taking shape, educational facilities are being built, portable water supply is improving, and sanitation drives are intensifying nationwide. The forthcoming increase in the disability component of the DACF from 3% to 5% further demonstrates how these imperatives are translating into more inclusive development.
Reducing Inequities by 2028
Since assuming office, the Administrator has set a clear vision for the road ahead: a 10% reduction in development inequities across all indices by the end of 2028. Achieving this target requires every stakeholder Chief Executives, Parliament, ministries, departments and agencies (MDAs), assembly members, traditional authorities, academia, the media, civil society, and Ghanaians from all walks of life to play their part. Under the four strategic imperatives, the DACF will cease to be merely a funding mechanism. It will become the powerful engine driving truly transparent, responsive, and citizen-centredlocal development across Ghana.
