Constitution- Local Government Change

Constitution- Local Government Change
Model Local Government Code, 2025
An Act of Parliament
To give full effect to Chapter Twenty-A of the Constitution on Village, Town, and City Municipalities; to establish service standards, governance structures, financial rules, and transition procedures for local governments; and to provide for related matters.

THE CONSTITUTION OF THE REPUBLIC OF GHANA (AMENDMENT) ACT, 2025
ARRANGEMENT OF SECTIONS

Short Title
Amendment of Article 240
Amendment of Article 241
Amendment of Article 242
Replacement of Article 243
Insertion of new Chapter Twenty-A – Villages, Towns, and Cities
Amendment of Article 245
Amendment of Article 252
Transitional Provisions

A BILL

Entitled:
An Act to amend the Constitution of the Republic of Ghana, 1992 to provide for a three-tier local government system comprising Villages, Towns, and Cities as foundational local governments; to redefine the role of District/County Governments as coordinating authorities; to restructure the District Assemblies Common Fund into a Local Governments Common Fund; and to provide for related matters.

Section 1 – Short Title
This Act may be cited as the Constitution of Ghana (Amendment) Act, 2025.

Section 2 – Amendment of Article 240
Article 240 is amended by the insertion immediately after clause (2) of the following new clauses:
“(3) The foundational units of local government shall be Village Assemblies, Town Municipalities, and City Municipalities.
(4) A District or County Government shall function as a coordinating authority for inter-municipal services and shall not derogate from the executive and legislative autonomy of Village, Town, and City municipalities.”

Section 3 – Amendment of Article 241
Clause (3) of Article 241 is repealed and replaced with the following:
“(3) A District/County Government shall be the coordinating authority for inter-municipal functions within its jurisdiction, but the highest political authority within a locality shall be the Village Assembly, Town Municipality, or City Municipality, as the case may be.”

Section 4 – Amendment of Article 242
Article 242 is amended—
(a) by substituting the words “District Assembly” with “District/County Council” wherever they occur; and
(b) by deleting paragraphs (c) and (d) and substituting the following:
“(c) elected representatives of Village Assemblies, Town Municipalities, and City Municipalities within the District/County;
(d) Members of Parliament representing constituencies within the District/County, who shall not have voting rights; and
(e) the District/County Director appointed under Article 243A.”

Section 5 – Replacement of Article 243
Article 243 is repealed and replaced with the following new Article:
“243. District/County Director
There shall be for each District/County a District/County Director, who shall be the professional head of the administration of the District/County Government.
The District/County Director shall be appointed through a competitive, merit-based process by the District/County Council and confirmed by a two-thirds majority of all its members.
The District/County Director shall serve a single term of six years.
The District/County Director may be removed from office by a resolution supported by two-thirds of all members of the District/County Council on grounds of stated misbehavior or incompetence.”

Section 6 – Insertion of New Chapter Twenty-A
There is inserted after Chapter Twenty of the Constitution a new Chapter to be numbered Chapter Twenty-A as follows:

CHAPTER TWENTY-A – VILLAGES, TOWNS, AND CITIES

243A – Definitions
A Village Assembly is a rural or peri-urban settlement with a population of not less than two thousand and not more than ten thousand.
A Town Municipality is an urban settlement with a population of not less than ten thousand and not more than one hundred thousand.
A City Municipality is a metropolitan settlement with a population exceeding one hundred thousand.
Parliament shall by law prescribe additional criteria, including economic activity and institutional infrastructure.

243B – Minimum Services
Each Village Assembly, Town Municipality, and City Municipality shall provide and maintain public services prescribed by law appropriate to its classification.

243C – Governance
A Village Assembly shall consist of elected members and representatives of traditional authorities and shall appoint a professional Village Manager as executive head.
A Town Municipality shall consist of directly elected councilors and shall appoint a professional Town Manager as executive head.
A City Municipality shall consist of directly elected councilors and shall be headed by a Mayor elected by universal adult suffrage for a single non-renewable term of six years.

243D – Legislative Authority
Village Assemblies, Town Municipalities, and City Municipalities shall have power to make by-laws consistent with the Constitution and national law.

243E – Finance
Each Village Assembly, Town Municipality, and City Municipality shall receive direct allocations from the Local Governments Common Fund.
They may impose and collect local rates, fees, and charges as provided by law.

243F – Boundaries and Reclassification
The Electoral Commission shall demarcate boundaries and reclassify settlements in accordance with prescribed criteria.

Section 7 – Amendment of Article 245
Article 245 is amended by substituting for the functions of District Assemblies the following:
“District/County Governments shall—
(a) coordinate regional planning and development across municipalities;
(b) manage bulk and inter-municipal services including regional roads, landfills, and district hospitals; and
(c) provide technical support to Village Assemblies, Town Municipalities, and City Municipalities.”

Section 8 – Amendment of Article 252
The words “District Assemblies Common Fund” are deleted and replaced with “Local Governments Common Fund” wherever they occur.
Insert after clause (2):
“(3) Moneys from the Fund shall be distributed directly to Village Assemblies, Town Municipalities, and City Municipalities in accordance with a formula approved by Parliament, having regard to population, need, and performance.”

Section 9 – Transitional Provisions
All District Chief Executives shall vacate office within six months of the coming into force of this Act.
District/County Directors shall be appointed within twelve months.
The Electoral Commission shall classify and gazette all settlements within three years.
First elections for City Mayors shall be held within eighteen months for qualifying settlements.
Existing by-laws and contracts shall continue in force until replaced by ordinances of the relevant municipality.

THE LOCAL GOVERNMENT CODE, 2025

ARRANGEMENT OF PARTS
Part I – Preliminary
Part II – Classification and Service Standards
Part III – Governance
Part IV – Finance
Part V – Elections and Participation
Part VI – Capacity and Service Delivery
Part VII – Transition
Part VIII – Miscellaneous

PART I – PRELIMINARY
Short Title
This Act may be cited as the Local Government Code, 2025.
Interpretation
Defines “Village Assembly”, “Town Municipality”, “City Municipality”, “District/County Government”, “Manager”, and “Mayor”.

PART II – CLASSIFICATION AND SERVICE STANDARDS
Classification
The Electoral Commission shall classify and reclassify settlements every ten years or as needed.
Minimum Services
(a) Villages: school, boreholes, CHPS, sanitation, feeder roads.
(b) Towns: JHS/SHS, Health Centre, water system, market, police, fire.
(c) Cities: universities, hospitals, transport, sewerage, cultural institutions.

PART III – GOVERNANCE
Village Assemblies – Elected members + chiefs; Village Manager appointed.
Town Municipalities – Elected council; Town Manager appointed.
City Municipalities – Elected council; directly elected Mayor (single six-year term).
District/County Governments – Representatives from municipalities; professional District/County Director.

PART IV – FINANCE
Local Governments Common Fund – ≥7% of national revenues; formula approved by Parliament; direct allocations to municipalities.
Own-Source Revenues – property rates, market fees, business permits.
Accountability – Annual budgets; audits by Auditor-General; publication of reports.

PART V – ELECTIONS AND PARTICIPATION
Non-Partisan Elections – No party sponsorship in local polls.
Right of Recall – Electors may recall officials subject to EC regulations.

PART VI – CAPACITY AND SERVICE DELIVERY
Training and Certification – Establishment of Local Government Service Training Institute; mandatory certification for Managers and Directors.

PART VII – TRANSITION
Transition Timelines –
EC classifies settlements within three years.
DCE offices abolished.
District/County Directors appointed within twelve months.
City Mayor elections within 18 months.

PART VIII – MISCELLANEOUS
Continuity of By-Laws – Existing by-laws remain until replaced.
Supremacy of Constitution – Constitution prevails in case of conflict.

EXPLANATORY MEMORANDUM
This Reform Package restructures Ghana’s local government by:
Establishing Village, Town, and City municipalities as foundational governments;
Transforming District/County Governments into coordinators of bulk services;
Replacing presidentially appointed DCEs with professional Directors;
Providing for directly elected Mayors in Cities;
Guaranteeing direct financing to municipalities; and
Setting phased transition measures with strong accountability.