How Ghana’s 5 regional airports generated GH¢13.13 million after spending GH¢39.14 million in 2022

Ho Airport generated no revenue but had an expenditure of GH¢1.38 million in 2024

A report by the Court of Audit shows that the financial results of the country’s five regional airports are disappointing.

According to the Court of Auditors’ latest report on the accounts of public authorities, companies and other statutory institutions in 2023, these airports generated a combined turnover of GH¢13.13 million in 2022, against an expenditure of GH¢39.14 million.

This resulted in a significant deficit of GH¢26.01 million, prompting a re-evaluation of strategies to optimise regional airport development and maximise economic benefits.

The regional airports in question are Kumasi Airport, now Prempeh I International Airport in the Ashanti Region; Tamale Airport in the Northern Region; Wa Airport in the Upper West Region; Sunyani Airport in the Bono Region; and Ho Airport in the Volta Region.

A detailed breakdown of the data revealed that Kumasi Airport had an expenditure of GH¢15.68 million but generated only GH¢8.22 million in revenue. Similarly, Tamale Airport brought in GH¢4.74 million in revenue but had a substantial expenditure of GH¢15.41 million.

Sunyani Airport earned GH¢95,626.58 in revenue after spending GH¢4.53 million. Surprisingly, Ho Airport generated no revenue but had an expenditure of GH¢1.38 million in 2022. Wa Airport generated GH¢77,250.48 in revenue while investing GH¢2.15 million in its operations.

The Auditor-General, Johnson Akuamoah Asiedu, attributed the unimpressive performance of the regional airports to low passenger numbers, the limited number of domestic airlines currently operating and under-utilization of rentable airport facilities or space for non-aeronautical revenues. The report highlighted that all five regional airports were not commercially viable, which affected the finances of the Ghana Airports Company Limited (GACL) due to low revenue generation compared to high operational costs.

The report warned that underutilized airport facilities, such as those at Ho Regional Airport, could lead to infrastructure deterioration. To address these issues, the Auditor-General recommended that GACL management encourage existing and potential domestic airlines to use the airports by offering possible incentives. In addition, a publicity campaign was suggested to promote and market these airports to encourage more air travellers to use the regional airports.

In addition, the GACL Commercial Service Department was advised to identify potential concessionaires to occupy unused spaces to generate more revenue through rent and royalties. The report also recommended that GACL management liaise with appropriate regulatory bodies to reduce regulatory hurdles for potential airlines without compromising safety.

In response, airport management admitted that none of the regional airports were commercially viable. However, they expressed optimism that with new infrastructure and the start of international operations, some airports in the regions could become viable. GACL stressed that the establishment of these non-commercially viable regional airports was a national policy and that the development of infrastructure at these airports would create significant employment during and after construction.

GACL also stressed its responsibility to provide related social and public services in all regions of the country from its own resources. The company should invest significantly in all regional airports including those in Kumasi, Tamale, Sunyani, Wa and the new airport in Ho, which will contribute to the economic development of the country.

GA/BB