Research report on Youth Financing in Ghana-2017 to 2022.

A COMPREHENSIVE REPORT ON YOUTH FINANCING IN GHANA 2017 -2022

Conducted by

Financed by

In 2023

EXECUTIVE SUMMARY This research report presents the findings of a comprehensive analysis of youth financing in Ghana, with a particular emphasis on tracking the disbursement and utilisation of the 5% District Assembly Common Fund (DACF) to the National Youth Authority (NYA). Despite being the coordinating body for youth-related activities in Ghana, the NYA faces constraints in accessing the full funding required to implement comprehensive and sustainable youth initiatives. Several limitations were encountered in accessing relevant information and data for this study. However, a thorough desk review revealed the following key findings; Central Government Interferences and reduction in the Allocation: Despite the DACF's growth by about 32% from 2018 to 2021, the NYA's 5% share underwent a worrying shift. In 2018, the NYA received 94.6% of its allocation, but in 2021, it got only 34%. This change suggests possible government influence and shift in priorities signalling the need for a comprehensive analysis of the factors contributing to this change.

Discrepancies in resource allocation and Priorities of the Ministry of Youth and Sports: Over the period, sector allocation to the Ministry of sports leaned towards sports development by extension the National Sports Authority as over the National Youth Authority for youth related services. In spite of this trend, and following the introduction of the 5% DACF to address funding deficits to the NYA for youth related services, an intriguing revelation from the study's evidence is that the National Youth Authority continues to allocate substantial funds exceeding four (4) million Ghana cedis towards sports infrastructural development during the studied period spanning from 2018 to 2021.

This finding underscores a critical challenge where resources intended for youth-focused initiatives are, in part, being directed towards sports-related infrastructure. This misallocation of funds not only diverges from the primary intention of the 5% DACF but also indicates a potential disconnect between funding objectives. Systemic delays in the release of funds: The study delved into the context of the DACF allocation, examining the legislative framework and policy guidelines governing its disbursement. It identified bureaucratic delays in the release of the DACF and hence, 5% to the NYA. These delays hinder the timely execution of youth development projects and adversely affect the NYA's capacity to fully implement very effective initiatives.

This report therefore emphasizes the importance of addressing challenges of youth financing to ensure effective allocation and utilisation of the 5% DACF for youth development. Evidence-based recommendations are provided to support stakeholders and policymakers in making informed decisions to overcome these constraints.

LIST OF ABBREVIATIONS NYA

National Youth Authority

DACF

District Assembly Common Fund

IGFS

Internally Generated Funds

MMDAS GoG

Metropolitan Municipal and District Assemblies Government of Ghana

NEIP

National Entrepreneurship and Innovation Programme

GSOP

Ghana Social Opportunity Projects

ILO

International Labour Organization

CSOs

Civil Society Organisations

MSMEs

Micro Small and Medium Enterprises

MoYS

Ministry of Youth and Sports

RTI YEFL

Right To Information Youth Empowerment for Life

Table of Contents 01.

CONTENTS

INTRODUCTION AND BACKGROUND

03 WHY INVEST IN THE YOUTH? .

05.

DACF AND THE 5% ALLOCATION TO THE NYA ( NYA ACT 939)

07 PURPOSE AND METHODOLOGY OF THE STUDY

08.

KEY FINDINGS

31.

CONCLUSIONS

32.

ADVOCACY RECOMMENDATIONS ACKNOWLEDGEMENTS

30.

REFERENCES

Recognising youth financing as a pivotal concern for all stakeholders is an investment in social cohesion, innovation, and economic prosperity, paving the way for a generation of empowered, responsible, and engaged citizens who will shape a brighter tomorrow.

INTRODUCTION AND BACKGROUND CHALLENGES YOUTHS FACE (GLOBAL TO GHANA) There is no doubt that regardless of socioeconomic, demographic, or geographic situation, youth face some degree of difficulty or uncertainty as they transition to adulthood. However, the situation youths experience in developing countries and more so in Sub-Saharan Africa is one of the most difficult in many respects (Awad, 2020). The high rate of unemployment among youths continues to be a pressing challenge for governments and policymakers across the globe. In the African continent, youths lack decent work opportunities; a majority are poverty-stricken; they are also undemocratic and often face unresponsive participation structures; others suffer protracted conflicts and natural disasters; and poor access to education and health services (Tagoe, 2015) Glaring inequalities in levels of youth development persist within and among countries in Africa, with the largest gaps in the areas of education, health, digital proficiency, and financial inclusion.

01

Nearly three-quarters of the world’s youth population is living in countries categorised as having low or medium levels of youth development. Youths are poor and live in rural areas, as well as girls and young women, far worst affected by poverty. For instance, young women are on average twice as likely as their male counterparts to be neither in employment nor in education or training. They are also twice as likely to acquire HIV as young men ( (UNFPA, 2014).

Ghana has a young age structure, with approximately 57% of the population under the age of 25 according to the Central Bureau of Statistics Ghana. The highest point of unemployment stood at 4.80% by the end of 2022, according to Trading Economics global macro models and analysts published by International Labour Organization (ILO) in 2021. In the long-term, the Ghana Unemployment Rate is projected to trend around 4.80 percent in 2023 and 4.70 percent in 2024, according to ILO report 2021.

The highest proportion of the unemployed has remained between ages 20 and 24 and 25 and 29 for the longest time since 2016.

Recognising the significance of empowering its young citizens, the Ghanaian government has embarked on various initiatives to provide financial support and opportunities to the youth, aiming to foster entrepreneurship, innovation, and economic growth. Despite the government's commitment to youth development and the designated allocation of the 5% District Assembly Common Fund to the National Youth Authority, concerns have been raised if the NYA receives the approved formula and if funds are used for the expected purpose. Therefore, this report seeks to shed light on the 5% DACF to the NYA and identify potential bottlenecks and suggest areas for improvement.

02

WHY INVEST IN THE YOUTH? Young people should be at the forefront of global change and innovation. Empowered, they can be key agents for development and peace. If, however, they are left on society margins, all of us will be impoverish. Let us ensure that all young people have every opportunity to participate fully in the lives of their societies (Kofi Annan, Former Secretary General, Unites Nations (UN), Citation2015).

By ratifying the African Youth Charter, Ghana has recognized its commitment to the principles and objectives of the charter, incorporating them into national policies and programs that address the needs and aspirations of the youth. Both the Constitution of Ghana and the African Youth Charter play crucial roles in safeguarding the rights and well-being of the youth in Ghana. These legal frameworks contribute to ensuring that young people have the necessary support and opportunities for their development, participation, and empowerment in society. In addition, young people have a right to receive support to develop their capabilities under the human rights-based approach.

They also have certain intrinsic rights by virtue of the fact that they are human beings as well as citizens of a country. These rights are essential to enable them to lead productive and fulfilling lives. It is important to note that the last two decades have witnessed youth population growth in Ghana and sub-Saharan Africa at large. Several factors have been attributed to this phenomenon. Some of these are improved healthcare systems, education, and general population growth (Ampadu-Ameyaw, 2020). The increasing youth population, though, offers opportunities for economic development by supplying labor for work, it also poses a challenge to the national government as the youth do not have access to employment opportunities to earn a decent living. The rising youth population with its associated unemployment is attributed to the growing instability in parts of the world, especially in the Middle East and North Africa. To avert a similar trajectory in Ghana, the state has been implementing major youth development programs in recent years. A policy paper commissioned in the year 2020 by the Forum for Agricultural Research in Africa (FARA),

03

examined some of the major interventions implemented by the and/or underemployment since 2000 and opportunities for employment creation in rural areas.These include Rural Enterprise Support Programme (REP); National Youth Employment Agency (YEA); (NEIP) (Entrepreneurial development); Nation Builders Corp (NABCO) and National Service; Ghana Social Opportunity Projects (GSOP)- Agricultural Labor Employment Services; Planting for Food and Jobs (PFJs) (Agricultural

Labor

Employment

Services);

COTVET-Training

and

Skills

Development; Youth in Afforestation Programme (YAfP); Youth in Agriculture Programme (YiAP); Microfinance and Small Loans Centre (MASLOC). To overcome these challenges and unlock the full potential of Ghana's youth, a multi-dimensional approach is required. This approach involves coordinated efforts from the government, private sector, civil society, and development partners. Prioritizing investments

in

education

and

skill

development,

supporting

youth

entrepreneurship, and fostering an enabling environment for innovation and job creation are essential steps toward empowering the youth and building a resilient and prosperous future for Ghana. In conclusion, investing in the youth of Ghana is not only a matter of social responsibility but also a strategic imperative for sustainable development and economic growth. Empowering the youth with education, skills, and opportunities not only enhances their individual well-being but also contributes to the overall progress of the nation.

04

DACF AND THE 5% ALLOCATION TO THE NYA ( NYA ACT 939) The District Assembly Common Fund (DACF) is an important component of the operationalization of the decentralization agenda in Ghana. The DACF is the revenue sharing system being implemented by the Central Government to address the issue of fiscal and resource imbalance at the local level. The Fund created under Article 252 of the 1992 Constitution of Ghana, is a formula-based system of financial transfers for local development from the Central Government. The Fund is to promote fiscal decentralization. Also, the Fund is expected to complement the Internally Generated Funds (IGFs) of the assemblies and not to be the main source of revenue for the assemblies (“The common fund newsletter”, 2014). However, over the years, the fund has increasingly become the main source of funds for the Metropolitan, Municipal, and District Assemblies (MMDAs). The DACF Act established in 1993(Act 455) defined total revenue as “all revenue collected by or accruing to the central government other than foreign loans, grants, non-tax revenue and revenues already collected by or for the District Assemblies under any enactment in force” and the administration, distribution, and management of the DACF is the responsibility of the Common Fund Administrators (Sarquah, 2008). Out of this, 5% is to be disbursed to NYA. The NYA which is domiciled in the Ministry of Youth and Sports was created through a parliamentary act 939 also known as National Youth Authority Act 2016.

Section 3. Provides the Functions of the National Youth Authority: “ To achieve the object under section 2, the Authority shall (a) formulate policies and implement programs that will promote in the youth (i) a sense of creativity, self-reliance, leadership, loyalty to the country discipline and civic responsibility; and (ii) a sense of friendship and co- operation through exchange of ideas with recognized youth organisations in other countries in Africa and the world;

05

(b) develop the capacity of the youth to participate in decision making at all levels; (c) establish and supervise youth leadership and skills training institutes; and (d) in collaboration with the Ghana Youth Federation, organize annual youth conferences at the national, regional and district levels.” Before the 5% DACF, Until 2016 when the ACT. 939 was passed into law by the Parliament of Ghana, the NYA had struggled to get funding to execute its mandate. It took the intense advocacy of Civil Society Organizations (CSOs) to push for this allocation. A chunk of the budget of the Ministry of Youth and Sports has gone to the NSA, leaving the NYA with almost nothing. This allocation has been made available for the various capacities of young people to be built. Section 17 spells out sources of funding for the NYA. “The funds of the Authority include (a) sums of money approved by Parliament; (b) five percent of the District Assemblies Common Fund subject to the formula approved by Parliament in accordance with article 252 of the Constitution; (c) return on investment of funds by the Authority; (d) donations and grants; and (e) any other sums of money that are approved by the Minister responsible for Finance”. Section 18 is very clear on the Application, of funds of the Authority (1) “The funds of the Authority shall be applied for the (a) performance of the functions of the Authority; (section 3 of ACT. 939) (b) administrative expenses and oversight supervision by the Ministry which shall in any case not exceed five percent of the funds of the Authority. (2) The Board shall ensure that the funds of the Authority are used solely for the purpose for which they are approved” It is very critical to make references to these aspects of the law that state the functions of the NYA, the source of funding, and the application of the funds in order to put the analysis into context.

06

PURPOSE OF THE STUDY This report represents a response to the urgent necessity to understand youth financing in Ghana spanning 2017 to 2021 tracking the 5% DACF allocation to the NYA and also providing

METHODOLOGY

conclusions and actionable recommendations that can enhance the financing of youth development in Ghana.

A thorough document review was conducted to enable an understanding of youth financing in Ghana. These documents include the appropriation bill from 2017 to 2022. A comprehensive list of the documents can be found on page 34.

07

KEY FINDINGS The scope of our analysis encompasses an array of dimensions crucial to comprehending the trajectory of youth financing. It encompasses an appraisal of diverse youth programs executed by the government, extends to the annual budget allocations designated for the Ministry of Youth and Sports, a fundamental repository of resources channeled to catalyze youth-oriented endeavors across the nation. At the core of the analysis lies the 5% DACF, a constitutionally mandated mechanism with the potential to invigorate youth development. It encompasses both the anticipated 5% allocation earmarked for the National Youth Authority (NYA) and the practical realization of this allocation. The disbursement and utilization of these funds form a linchpin in analyzing the tangible impact of the 5% DACF in fostering youth-centered initiatives. It also includes challenges that underpin youth financing and the utilization of the 5% DACF.

08

YOUTH PROGRAMS UNDERTAKEN AND OVERALL FINANCING Youth financing encompasses a range of financial mechanisms and support programs designed to empower young individuals economically and foster their active participation in the economy. In the context of Ghana, it plays a vital role in addressing the unique challenges faced by the youth population, such as unemployment, limited access to capital, and entrepreneurial endeavors.

Over the five-year period (2017-2022) under consideration, the following agencies; Ghana Enterprise Agency (GEA), National Entrepreneurship& Innovation Programme (NEIP) National Service Secretariat (NSS), Integrated Community Centre for Employable Skills (ICCES), National Vocational Training Institute (NVTI), Opportunities Industrialization Centers (OIC) Ghana and Ghana Regional Appropriate Technology Industrial Service(GRATIS) had many programs over the last 5 years. These programs are categorized under five main themes: namely skills development (Technical and Vocational); skills development (Apprenticeship);entrepreneurship training programs; leadership, governance, and democracy (Advocacy); and direct entrepreneurship support to Micro, Small, and Medium Enterprises (MSMEs).

09

As it is already observed above, there is multiplicity of institutions been actively engaged in diverse youth-oriented programs. The accompanying chart presents meticulously, aggregated data from these institutions, providing the overall picture on the investment into the various youth development themes for 2017 to 2022;

The budget analysis of youth programs in the chart highlights government's commitment to youth development and empowerment. The substantial allocation towards entrepreneurship training (66%) reflects the government's recognition of the role of youth entrepreneurship in driving economic growth and job creation. This was followed by programmes dedicated to advocacy (i.e., leadership, governance and democracy-related programmes) at 25%.

Although no clear pattern can be established in the expenditure allocated to youth intervention programmes over the period, the highest allocation was in 2020 (GHS710,206,334) and the least expenditure was also observed for 2021 (GHS46,431,463),UNICEF 2022. With an overall expenditure of GHS 1,749,896,438, as seen in the above chart, 46% of this funding was from government sources and the remaining 54% percent coming from various donor agencies. Notably, within this donor- driven segment, the MasterCard Foundation has played a prominent role, contributing a significant 71%.

10

This financial landscape, as evidenced by data from UNICEF in 2022, reflects a steadfast commitment from donors towards financing youth programs in Ghana over the past five years. Should donors escalate their investment in youth

programs

beyond

governmental

contributions,

far-reaching

implications can emerge. Firstly, heightened donor commitment could potentially bridge funding gaps, allowing for broader, more impactful youth initiatives to be undertaken. However, a notable shift in reliance on donor funds raises the question of sustainability and self-reliance. While donor contributions can invigorate immediate projects, a robust national framework for financing youth programs remains essential for sustained progress.

Striking the right balance between donor-driven support and domestic funding efforts will be pivotal to ensuring a stable foundation for Ghana's youth development endeavors.

11

BUDGET ALLOCATION TO NYA THROUGH THE MINISTRY OF YOUTH AND SPORT BY YEAR This session unveils a critical facet of youth financing in Ghana by delving into the specifics of financial provisions allocated to the NYA across the years from 2018 to 2021, a comprehensive insight into the prioritization and support extended to youth-focused initiatives by the government. This provides a lens through which we can assess the evolution of financial commitments and the consequential impact on the NYA's capacity to spearhead impactful youth development programs during this pivotal period.

The 2018 budget appropriated sheds light on allocation of funds in different areas. An important point is that 23% of the total budget allocated to the Ministry of Youth and Sports, which is GHS 7,533,929, was directed to "Youth Services/NYA" as seen in the table below;

Year (2018)

GOG

IGF

Ministry of Youth and Sports

32,043,586

755,914

OTHERS/ DONORS

TOTAL

PERCENTAGE

32,799,500

100%

Compensation and 11,930,809 Administration

11,930,809

36%

Youth Services /NYA

7,533,929

23%

13,334,762

41%

7,533,929

Sport 12,578,84 Development 8

755,914

12

However, "Sport Development" received an allocation of about GHS 12,578,848, this shows a strong focus on developing sports as compared to youth services.

The percentages given, 36% for "Compensation and Administration" and 41% for "Sport Development" tells us how much of the Ministry's budget these areas received. These percentages show the budget priorities and spending patterns during the year 2018.

Year (2019)

Ministry of Youth and Sports

GOG

IGF

OTHERS/ DONORS

TOTAL

38,007,61 8

977,428

4,810,000

43,795,04 6

100%

4,810,000

19,174,409

44%

8,444,417

19%

16,176,220

37%

Management and Administration 14,364,409

Youth Services /NYA

Sports Development

8,444,417

8,444,417

8,444,417

PERCENTAGE

13

In the context of the 2019 budget allocations, comparing with the previous year 2018, the "Ministry of Youth and Sports" received a higher total budget of GHS 43,795,046, sourced from Government of Ghana (GOG), Internally Generated Funds (IGF), and Other/Donor contributions. This signifies a 33% increase in the budget allocation from the prior year. Notably, "Sport Development" remained a priority, securing an allocation of GHS 16,176,220, comprising 37% of the Ministry's budget, with a proportionate growth of 21% from the preceding year. However, the "Youth Services/NYA" category received an allocation of GHS 8,444,417, equating to 19% of the total budget. Additionally, the "Management and Administration" category, budgeted at GHS 19,174,409, constitutes 44% of the total budget, indicating an increase compared to the previous year 2018.

Continuing the analysis into the 2020 budget allocations, in comparison with the preceding years, The Ministry of Youth and Sports received a total budget of GHS 40,244,155, with the Government of Ghana contributing GHS 39,709,914 and Internally Generated Funds (IGF) adding GHS 534,241. This overall budget increase reflects about 22% growth compared to the previous year 2018 as seen in the table below.

Year (2019)

GOG

IGF

Ministry of Youth and Sports

39,709,914

534,241

Management and Administration Youth Services /NYA

16,791,494

OTHERS/ DONORS

TOTAL

40,244,155

100%

16,791,494

42%

19%

7,641,295

23,100

7,664,395

15,277,124

511,141

15,788,265

Sports Development

PERCENTAGE

39%

14

Delving deeper, the "Compensation and Administration" category received an allocation of GHS 16,791,494, solely from GOG sources. This allocation constitutes 42% of the total budget, revealing a continued emphasis on administrative components. The "Youth Services/NYA" allocation of GHS 7,664,395 represents 19% of the total budget, with a decrease of 9% from the previous year 2019. Meanwhile, the "Sport Development" category secured a budget of GHS 15,788,265, reflecting 39% of the total budget and about 2% decrease from 2019.

In 2021, the Ministry of Youth and Sports had a total budget of GHS 34,412,805, which is 14% less than last year. About 41% of the budget GHS 14,219,554,

went

to

"Management

and

Administration".

"Youth

Services/NYA" got GHS 7,888,889, making up 23% of the budget, a small increase of 2% from last year. But the budget for "Sport Development" decreased by 22% from the previous year to GHS 12,304,363.

Year (2019)

GOG

IGF

Ministry of Youth and Sports

33.961.037

451,768

Management and Administration Youth Services /NYA

16,791,494

OTHERS/ DONORS

TOTAL

34,412,805

100%

14,219,554

41%

23%

7,641,295

43,742

7,888,889

11,896,337

408,026

12,304,363

Sports Development

PERCENTAGE

36%

15

In the final year under study, 2022, the Ministry of Youth and Sports received a total budget of GHS 318,329,000, drawing from Government of Ghana (GOG), Internally Generated Funds (IGF), and Other/Donor sources. This diverse sourcing emphasises a multifaceted approach to youth development.

Year (2022)

GOG

IGF

OTHERS/ DONORS

TOTAL

PERCENTAGE

Ministry of Youth and Sports

110,311,000

479,000

207,539,000

318,329,000

100%

207,539,000

285,792,642

90%

7,684,364

2%

24,851,994

8%

Compensation and Administratio 78,253,642 n

Youth Services /NYA Sport Development

7,639,588

24,417,770

44,776

434,224

16

Within this allocation, the "Compensation and Administration" category received GHS 285,792,642, supporting administrative functions. The "Youth Services/NYA" allocation of GHS 7,684,364, and the allocation of GHS 24,851,994 for "Sport Development". This final year's analysis, when viewed alongside the previous years, encapsulates the evolving journey of youth financing, highlighting dynamic shifts. The allocation of 90% of the total budget to "Compensation and Administration" in the final year raises important concerns about resource allocation and its potential implications.

The influx of donor funds often represents an opportunity to amplify the impact of youth-focused programs, expand initiatives, and invest in developmental projects that directly benefit the target audience.

However, if a substantial portion of these funds is channeled towards administration and compensation, it may hinder the intended transformative effects of donor contributions on the ground. Undoubtably, administrative functions are crucial for effective governance and operation of any ministry.

However, a disproportionately high allocation in this category raises concerns about the balance between administrative overhead and direct programmatic activities related to youth development.

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THE DACF ALLOCATIONS AND THE 5% TO NYA The District Assemblies Common Fund (DACF) allocation and its disbursement to the National Youth Authority (NYA) over the specified years offer valuable insights into both the trend of the DACF and its implications for the NYA's funding. The table below provides DACF for each, the expected 5% of the DACF and the actual amount disbursed to NYA. AMOUNT DISBURSED TO NYA (GHS)

PERCENTAG E

YEAR

DACF (GHS)

5% OF DACF (GHS)

2018

1,812,144,435.00

90,607,221.75

85,751,501.26

94.6%

2019

2,079,426,613.00

103,971,330.7

71,218,530.03

68.4%

2020

2,312,706,550.00

115,635,328

29,218,387.00

25.3%

2021

2,402,331,910.00

120,116,595.5

40,847,248.57

34%

2022

3,342,970,849.00

167,148,542.5

Unknown

Starting from 2018, the DACF allocated was GHS 1,812,144,435.00. The expected 5% allocation for the NYA amounted to GHS 90,607,221.75. Impressively, the NYA received GHS 85,751,501.26, signifying a commendable disbursement of 94.6% of the expected allocation. This indicates a robust commitment to youth development efforts.

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However, the subsequent years saw a fluctuation in the disbursement percentages. In 2019, despite a higher DACF allocation of GHS 2,079,426,613.00, the NYA received only GHS 71,218,530.03, corresponding to a disbursement percentage of 68.4% of the expected 5% allocation. The trend continued in 2020, with the DACF allocation increasing to GHS 2,312,706,550.00, yet the NYA received just GHS 29,218,387.00, representing 25.3% of the expected 5% allocation. This decline raises concerns about effective fund distribution, and the government’s priorities in this year, potentially affecting the NYA's funding for impactful youth initiatives. 2021 demonstrated improvement, as the NYA received GHS 40,847,248.57, constituting 34% of the expected 5% allocation from a DACF of GHS 2,402,331,910.00. Regarding 2022, data on the disbursement to NYA from the GHS 3,342,970,849.00 DACF allocation was not available. In summary, analyzing the DACF trend alongside its disbursement percentages to the NYA emphasizes variations in fund allocation. The implications encompass challenges in maintaining consistent funding for youth programs, potentially affecting strategic planning, implementation, and sustainability. Ensuring steady and proper allocation of the anticipated 5% DACF to the NYA holds significance for fostering meaningful and continuous youth development in Ghana.

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UTILISATION OF THE DACF PERCENTAGE DISBURSED TO NYA Examining the utilization of the 5% District Assemblies Common Fund (DACF) by the National Youth Authority (NYA) provides valuable insights into its allocation and expenditure from 2018 to 2021.

During this period, the NYA received a total amount of GH¢227,035,666.86 from the DACF, with varying allocations in each year. Specifically, GH¢85,751,501.26 was received in 2018, GH¢71,218,530.03 in 2019, GH¢29,218,387.00 in 2020, and GH¢40,847,248.57 in 2021.

Out of the total funds received, an amount of One Hundred and Eighty-Four Million, One Hundred and Twenty-Eight Thousand, Nine Hundred and Forty- Seven Ghana Cedis, Eighty-Two Ghana Pesewas (GH¢184,128,947.82) representing 81% of the amount received was spent on Youth related Infrastructure developments according to the Authority to YEFL through the RTI1 . The Infrastructures covered the following;

20 1

Youth Empowerment for Life (YEFL), a youth focused organisation in Ghana utilised the Right to Information (RTI) to access information pertaining to the 5% District Assemblies Common Fund (DACF) and its utilisation during the period from 2018 to 2021 which was part of the documents reviewed for this study report.

Also in the chart above is a detailed breakdown of NYA's expenditure for the same period in focus which was provided to the Northern Regional Youth Network;2 Youth Resource Centers - 123,253,737.25 Construction of dormitories, halls, kitchen for Youth Leadership Skills and Training Institutes - 6,046,737.69 Astro Turf Facilities - 4,082,760.24 Construction and renovation of offices; Regional and District Directorates National Office Complex - 19,530,382.26 Tartan Trucks Const.- 5,610,000 The expenditure on youth-related infrastructure projects is a positive initiative, as it aims to create physical spaces and facilities that cater to the needs of young people.

Infrastructure development can play a crucial role in providing resources, training, and support to empower youth and enhance their skills and capabilities. It is worth mentioning that, though 72% of the expenditure is on youth centres, construction of these centres are still on going and ranges from 60% to 95% completion across the country. While this strategic investment in youth-related infrastructure is commendable, it's noteworthy that the total infrastructure expenditures reported to different entities by NYA present inconsistencies. The reported total of GH¢184,128,947.82 on infrastructure provided to YEFL does not align with the total of GH¢158,523,617.4 provided to the Northern Regional Youth Network. Addressing this discrepancy is essential to ensure accurate and transparent reporting, enhance accountability, and maintain trust among stakeholders.

21 2

The Northern Regional Youth Network also utilised the Right to Information (RTI) to access information pertaining to the break down of NYA's expenditure on infrastructure development from the DACF % disbursed to NYA from 2018 to 2021 which was part of the documents reviewed for this study report.

Additionally, the responsibility for building Astro Turf Facilities (artificial turf sports fields) in Ghana lies with the Ministry of Youth and Sports (MOYS) and not the National Youth Authority (NYA). The National Youth Authority (NYA) is tasked with implementing and coordinating youth development programs and activities aimed at empowering young people in Ghana. Their focus is primarily on initiatives related to skills development, capacity-building, entrepreneurship support, and youth engagement. While the NYA may be involved in promoting sports and recreational activities for young people, the actual construction and management of sports infrastructure like Astro Turf Facilities fall under the purview of the Ministry of Youth and Sports and the National Sports Authority.

The Ministry of Youth and Sports (MOYS) is responsible for formulating and implementing policies and programs related to sports, youth development, and recreation. As part of their mandate, they oversee the construction and maintenance of sports facilities, including AstroTurf Facilities, to encourage youth participation in sports and provide them with better opportunities for athletic development and recreation. Based on the NYA's mandate, it is not expected to handle sports infrastructure projects like Astro Turf Facilities directly. If such expenditures are being made, there is a need for further investigation to understand the rationale behind these allocations and to ensure the funds are appropriately utilized to achieve the NYA's primary objectives of youth development and empowerment. Additionally, coordination with the Ministry of Youth and Sports (MOYS) is essential to ensure that sports-related infrastructure projects are carried out effectively and in line with the overall objectives of youth development in Ghana.

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Additionally, GH¢37,888,720.92, amounting to 16.7% of the total funds, was dedicated to Programmes and Operations. This allocation covered various aspects including providing feeding grants to Youth Leadership and Skills Training Institutes, administrative support to Regional and District Youth Directorates, and comprehensive skill development and capacity building initiatives for youth.

A further allocation of GH¢5,017,998.12, which constituted 2.3% of the total, was directed towards goods and services, as well as general administration over the period. This allocation emphasizes the importance of supporting the administrative aspects of youth development programs.

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CHALLENGES OF YOUTH FINANCING, THE DACF AND THE 5% TO NYA Financing youth development is a vital investment for governments seeking to harness the potential of their young population and drive sustainable socio- economic growth. Empowering youth with access to education, skills training, employment opportunities, and support for entrepreneurship not only enhances their individual prospects but also contributes to overall national development. However, governments often encounter various constraints when it comes to allocating and effectively utilising resources for youth-focused initiatives.

In this context, this paper examines the constraints governments face in financing youth development and explores the implications of these challenges. Despite recognising the significance of investing in youth, governments encounter numerous obstacles that impede their efforts to allocate adequate funds and implement effective programs. These constraints arise from a combination of financial, administrative, and institutional factors, which create complex hurdles to overcome. Here, we shed light on these challenges under three broad themes and their impacts on the realisation of comprehensive youth development.

01

Systemic delays in the release of the Fund

There are a lot of bureaucracies involved in the process of disbursing the DACF which delays the receipt of funds by MMDAs. This process starts from the submission of proposed guidelines to Parliament to the receipt of funds by MMDAs. King et al.

(2003) add that, the release of the percentage of the country’s total annual revenue to the fund sometimes delays for more than a year. And since the DACF is usually used for the implementation of projects, the delay in its release hinders the timely execution of development (World Bank, 2004).Despite references to these issues in past studies, it is noteworthy that the situation remains largely unchanged up to the present day. News portals and agencies, including MPs, MCEs, and platforms like MyJoyOnline, Citynews, continue to report on the delays in DACF disbursement. This ongoing reporting indicates that the challenges persist, underscoring the need for ongoing attention to this issue.

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Moreover, recent observations from the report of the Committee of the Whole, in the second session of the eight parliament concerning the proposed DACF distribution formula for 2022, reaffirm the tangible consequences of these delays.

The committee's findings pinpoint the transfer and release of funds as a critical factor contributing to project delays and subsequent hindrances in project completion. As such, the need to address these persistent challenges remains crucial for the effective implementation of development initiatives and the advancement of local communities in Ghana. Delays in the disbursement of the DACF can directly impact the 5% allocation to the NYA. If the DACF funds are not released in a timely manner, it can lead to delays in passing on the allocated 5% to the NYA for youth development projects. These delays can hinder the NYA's ability to execute timely youth-focused initiatives, affecting the effectiveness of their programs.

02

Central Government Interferences and reduction in the Allocation:

The central government frequently issues directives to Metropolitan, Municipal, and District Assemblies (MMDAs) regarding the utilization of the District Assemblies Common Fund (DACF). This often limits the MMDAs' flexibility to prioritize projects according to their most urgent needs.

Additionally, there are instances where the allocated funds are reduced.

A specific case illustrating this scenario is presented in the Committee of the Whole's 2022 report: "The approved budget of GHS3,342,970,849.00 for the year 2022, as stated in the appropriation Act, was later amended by the Ministry of Finance in a letter dated March 29, 2022.

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The Ministry instructed the Fund Administrator to base the distribution formula on an amount of GHS 2,387,410,261.00. This reduction, as explained by the Ministry, was a response to fiscal measures endorsed by the cabinet to address the prevailing economic challenges." These directives and reductions imposed by the central government can significantly constrain MMDAs' ability to address their immediate development needs, potentially hindering effective local project implementation. Also, the 5% portion designated for youth empowerment might be reallocated to accommodate government priorities, hindering the NYA's receipt of the full intended allocation.

03

Discrepancies in resource allocation and priorities of the Ministry of Youth and Sports:

Over the period, sector allocation to the Ministry of sports leaned towards sports development by extension the National Sports Authority as over the National Youth Authority for youth related services. In spite of this trend, and following the introduction of the 5% DACF to address funding deficits to the NYA for youth related services, the National Youth Authority continues to allocate substantial funds exceeding four (4) million Ghana cedis towards sports infrastructural development during the studied period spanning from 2018 to 2021.The implication lies in the potential diversion of already scarce resources away from core youth-focused programs and initiatives. Allocating significant funds to sports infrastructure could potentially compromise the NYA's ability to address critical youth-related needs, such as skills development, leadership training, and empowerment programs.

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CONCLUSIONS In conclusion, this research has shed light on the challenges and intricacies of youth financing in Ghana.

Despite commendable efforts by the government to implement various youth programs through different agencies, there are persistent challenges that hinder effective youth development and empowerment. The inconsistent

budget

allocation,

delays

in

fund

disbursement, central government directives, and the nonpredictability of fund amounts collectively undermine the capacity of the National Youth Authority (NYA) to execute timely and impactful youth-focused initiatives. These challenges highlight the need for comprehensive reforms and strategies to ensure that youth financing in Ghana is efficient, transparent, and aligned with the overarching goal of empowering the nation's young population.

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ADVOCACY RECOMMENDATIONS Addressing the challenges identified in this research requires a multifaceted approach that involves collaboration between various stakeholders, including government entities, development partners, and youth organizations. The following recommendations are proposed to enhance the effectiveness of youth financing in Ghana: Transparent Allocation: Government should ensure transparency in the allocation and disbursement of funds for youth programs. Publish detailed reports on how funds are allocated, utilized, and their impact on youth development. This transparency will build trust and accountability.

Enhanced Budget Allocation: The government should allocate a more substantial and consistent portion of the budget towards youth development programs. Increasing the financial resources available for youth initiatives will enable the implementation of a wider range of impactful projects and programs.

Diversified Funding Sources:

Apart from relying on the District Assembly Common Fund (DACF), NYA must explore additional funding sources. This could involve leveraging public-private partnerships, accessing grants from international organisations, and encouraging corporate social responsibility initiatives by private companies operating in Ghana· Also, CSOs, NGOs, and other Youth Centered Institutions could also make available some percentage of their annual budget to aid in the development of the youth and the funding of youth- centered programs.

Monitoring and Evaluation: Government in partnership with its stakeholders should establish a robust system for monitoring and evaluating the effectiveness of youth programs. Regular assessments will help identify areas for improvement and allow for adjustments to be made based on actual outcomes. There should also be a coordinated front for all youth programs and organisations so that all interventions could be tracked and checked to fulfil its promise.

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ACKNOWLEDGEMENTS

We extend our heartfelt gratitude to all individuals and institutions whose support and contributions made this research on youth financing in Ghana possible. We would like to acknowledge the insights, and expertise provided by FINDVIEW and YEFL team , whose valuable feedback enriched the quality of this study.

We thank you for your continued support in our efforts to contribute to the Youth Development of Ghana

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Demanding Governance, 71-100.

Abbey, C. (2010). Tracking the Ghana District Common Fund. Demanding Governance,, 91 - 100.

Ampadu-Ameyaw, R. J.-A. (2020). A review of youth employment initiatives in Ghana: policy perspective.

Awad, A. (2020). From school to employment; the dilemma of youth in Sub–Saharan Africa. International Journal of Adolescence and Youth, pp.945-964.

Ayee. (2013). The developmental state experiment in Africa. The experiences of Ghana and South Africa. The Round Table, 259-280.

Tagoe, M. A.-S. (2015). Harnessing the power of the youth through national youth policies in Ghana:. Challenges to notions of empowerment, 69-91.UNFPA. (2014).

Annual Report . https://www.unicef.org/ghana/media/4666/file/2022%20Youth%20%20Budget%20Brief.pdf https://mofep.gov.gh/sites/default/files/news/2018-Appropriation-Report.pdf https://mofep.gov.gh/sites/default/files/budget-statements/2021Appropriation- Act.pdf. https://citinewsroom.com/2021/10/government-owes-common-fund-overgh% C2%A22-billion-minority/ https://myjoyonline.com/delayed-release-of-district-assembly-commonfundhampering- programmes-of-local-assemblies-amansie-south-dce/ https://www.ghanaiantimes.com.gh/delay-in-payment-of-common-fundnotjustifiable- mp/ http://ir.parliament.gh/bitstream/handle/123456789/2162/District%20Assem bly%2 0Common%20Fund%202022.pdf?sequence=1&isAllowed=y

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Youth Leading Change