PPPs are critical to sports infrastructure: Lessons from Morocco

By Paul Rex DANQUAH

The current Government, led by His Excellency President John Dramani Mahama’s ambition to develop world-class sports infrastructure has gained new momentum, driven by recent investments such as the Borteyman Sports Complex built by the previous NPP govenment and growing interest in hosting continental events.

Yet fiscal constraints, rising public debt pressures, and the high cost of maintaining sports facilities present a major challenge for government-led delivery. If Ghana is to build a sustainable, commercially viable sports ecosystem, Public–Private Partnerships (PPPs)must shift from being a theoretical alternative to becoming a core strategy.

Across Africa, Morocco offers a compelling demonstration of how structured PPPs—paired with strong governance and a clear national vision—can deliver modern stadiums, transform urban environments, and create long-term economic value. As Ghana explores innovative financing approaches such as deferred PPPs, Morocco’s recent experience provides important lessons.

Why PPPs are timely for Ghana

Ghana’s public finances are under pressure. Budgetary resources are stretched across competing needs—education, health, transport, and digital infrastructure. In such an environment, large capital outlays for stadiums or multi-sport complexes are difficult to sustain.

Ghana’s sports sector stands at a critical crossroads. While the country has produced world-class talent and enjoys a deep passion for sports—especially football—its infrastructure base has not kept pace with modern demands.

Aging stadiums, limited community facilities, and inadequate maintenance funding continue to constrain athlete development and the hosting of international events. In this context, Public–Private Partnerships (PPPs) are not just desirable; they are timely and strategic for financing sports infrastructure in Ghana. PPPs can offer the following practical advantages:

1. Reduced upfront fiscal burden

Under PPP structures, the private sector finances, builds, and often maintains infrastructure for an agreed concession period. Government spreads payments over time or shares revenue streams. This suits Ghana’s current fiscal consolidation efforts and allows strategic facilities to proceed without distorting annual budgets.

2. Improved sustainability and asset maintenance

Sports infrastructure worldwide often fails due to poor maintenance. PPPs embed long-term operations and maintenance responsibilities into contractual obligations, ensuring facilities remain in good condition long after construction.

3. Commercial expertise and revenue diversification

Modern sports venues must be multi-purpose—hosting concerts, conferences, sports academies, technology expos, and community events. Private operators bring the commercial discipline needed to maximize these revenue streams, transforming stadiums from cost centres into viable business assets.

Morocco’s playbook: a model of large-scale sports investment

Morocco has embarked on one of the most ambitious sports infrastructure programmes on the continent, spurred by the hosting of AFCON 2025 and the 2030 FIFA World Cup (co-hosted with Spain and Portugal). Its approach demonstrates several strengths Ghana can build on:

1. Integrated financing and institutional coordination

Morocco employs a blend of public funding, development bank financing, and private investment. State-linked institutions such as CDG (Caisse de Dépôt et de Gestion) and SONARGES (National Company for the Realization and Management of Sports Facilities) work closely with private contractors under 20-year amortization plans. This spreads government financial commitments while ensuring investor confidence.

2. Strategic urban planning beyond stadiums

Stadium investments are paired with upgrades in transportation, airports, hospitality, and urban regeneration. This ensures that sports facilities are not isolated structures but catalysts for tourism, mobility, and city branding.

3. Long-term legacy and commercialization

Morocco deliberately designs stadiums as hubs for multiple revenue lines—concerts, football commercialization, private academies, esports centres, conventions, and retail spaces. This reduces reliance on matchday income and keeps facilities economically active year-round.

4. Sustainability and green standards

New stadiums are being built with energy-efficient systems, water recycling, and climate-resilient architecture—appealing to development partners and aligning with global climate finance priorities.

What Ghana can learn—six actionable lessons

1. Establish clear, investor-friendly PPP frameworks

Ghana has a PPP law, but sports infrastructure requires sector-specific templates, transparent procurement steps, and risk-sharing structures to attract serious investors. Clarity builds confidence and reduces delays.

2. Develop mixed-use sports districts

Rather than stand-alone stadiums, Ghana should plan sports districts—combining training centres, retail, hospitality, parks, health and wellness facilities, office spaces, and entertainment venues. This approach ensures mixed cash flows that support sustainability.

The Sekondi Essipong Statium and Tamale Stadium for example has an inbuilt hotel facility and VIP Commercial boxes which has not been utilized since the hosting of the CAN 2008 and other sporting events hosted by the country.

3. Adopt “deferred PPPs” to manage affordability

Deferred PPPs, currently debated within Ghana’s infrastructure policy circles, allow construction to begin with payments starting only after the facility is certified and operational. This model is ideal for a fiscally constrained environment—but must be accompanied by strict oversight and independent verification.

4. Leverage development finance institutions (DFIs)

Donor Funding Institutions (DFIs) such as AfDB, IFC, and the World Bank offer concessional financing, guarantees, or risk-mitigation instruments. These mechanisms can lower project risk and attract private capital—exactly what Morocco has been doing successfully.

5. Anchor projects in transport and urban mobility planning

Ghana’s past stadium projects suffered from accessibility issues. Morocco’s coordinated approach shows that transport (rail, roads, BRT systems) must be integral to planning—not an afterthought.

6. Ensure community access and socio-economic inclusion

PPPs must include contractual guarantees for grassroots sports programmes, local employment quotas, collaboration with schools, and community rental rates. This protects the public interest and ensures that facilities do not become exclusive enclaves.

Risks Ghana must carefully manage

While PPPs unlock financing and expertise, they are not without risks:

1. Future fiscal exposure

Deferred payments can accumulate into heavy long-term commitments. Ghana should implement affordability thresholds and long-term debt simulations before signing any major concession.

2. Governance weaknesses

Poor contract management, corruption, or weak enforcement can undermine PPPs. Ghana needs independent transaction advisors, strong oversight institutions, and transparent procurement processes.

3. Overestimation of demand

Sports infrastructure only succeeds when grounded in realistic usage projections. Market and feasibility studies—not political enthusiasm—must drive decision-making.

4. Ensuring fair value for money

All PPP deals must demonstrate clear public benefits, measurable outcomes, and competitive tendering to ensure that government obtains optimal value.

Policy recommendations for Ghana

Below are clear, actionable policy recommendations for Ghana, tailored to sports infrastructure development through Public–Private Partnerships (PPPs):

1. Develop a National Sports Infrastructure PPP Policy

Government should complement the existing national PPP framework with a sector-specific Sports Infrastructure PPP Policy.

This policy should:

• Define eligible sports facilities (stadia, training centres, community sports parks, academies).
• Clarify roles of the Ministry of Youth and Sports (MoYS), National Sports Authority (NSA), and PPP Unit (MoF).
• Provide guidance on viable PPP models (DBFOM, concessions, joint ventures).

Expected outcome: Policy clarity and reduced uncertainty for private investors.

2. Establish a Dedicated Sports Infrastructure PPP Desk

A Sports PPP Desk should be created within MoYS or NSA to:

• Prepare bankable project pipelines.
• Coordinate feasibility studies and transaction advisory services.
• Liaise with the Ministry of Finance PPP Unit.

Expected outcome: Improved project preparation and faster deal closure.

3. Prioritize Rehabilitation and Redevelopment over New Builds

Policy should emphasize rehabilitation, upgrading, and commercial redevelopment of existing facilities rather than new construction.

• Use PPPs to retrofit ageing stadia into multi-purpose venues.
• Encourage mixed-use developments (retail, offices, hotels, gyms).

Expected outcome: Lower capital costs and better asset utilisation.

4. Build Public Sector Capacity in Sports PPP Management

Targeted capacity building is essential:

• Train MoYS, NSA, and MMDAs in PPP project appraisal and contract management.
• Engage local universities and professional bodies.
• Develop standardized templates and toolkits.

Expected outcome: Stronger public negotiation capacity and better value for money.

5. Incentivize Private Sector and Diaspora Participation

Government should introduce incentives such as:

• Tax reliefs for sports infrastructure investments.
• Long-term land leases instead of outright sales.
• Diaspora bonds or co-investment schemes for sports projects.

Expected outcome: Expanded funding sources and national ownership.

Conclusion

Ghana stands at an important crossroads. The country has the talent, market potential, youth population, and national pride to justify major investment in sports infrastructure. But the path must be financially prudent, commercially sound, and socially inclusive. Morocco has shown how a nation—even outside Africa’s largest economies—can mobilize strategic financing, attract investment, and build world-class sports facilities with lasting economic impact.

Ghana’s future stadiums and sports complexes should not become burdens on the national budget. With well-designed PPPs, they can become engines of tourism, jobs, youth development, urban transformation, and national competitiveness. It is time for Ghana to embrace PPPs as the backbone of its next generation of sports infrastructure.

About the Author:

Paul Rex Danquah is a Researcher and Public Policy Analyst with considerable knowledge and expertise in Public Private Partnership, Leadership inspiration and Public Policy formulation.

He is currently a Senior Management Consultant, Gimpa Training and Consulting, the Consulting Division of the Ghana Institute of Management and Public Administration (GIMPA

Contact the Author on 0205012686 / [email protected]

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