DVLA cuts roadworthiness contract cost from $155m to GH₵2m

The Driver and Vehicle Licensing Authority (DVLA) has successfully renegotiated its roadworthiness certificate contract, reducing the total expenditure from $155.4 million over three years to just GH₵2 million. CEO Julius Neequaye Kotey announced that the original Service Level Agreement, which cost $51.8 million annually between 2023 and 2025, has been replaced by a significantly downsized agreement for the new three-year period. This fiscal overhaul is projected to save the state approximately $50 million every year.

The renegotiation is part of a strategic effort to plug fiscal leakages and move away from expensive, dollar-denominated contracts with foreign vendors. By downsizing the contract to a one-time payment of GH₵2 million over three years, the DVLA aims to retain more economic value within Ghana and address historical concerns regarding the high cost of previous agreements. Mr. Kotey highlighted that the previous arrangements were susceptible to revenue leakage, necessitating a shift toward more sustainable financial management.

Funds recovered through this cost-cutting measure are being redirected toward modernization and the enhancement of internal digital systems. Key projects include the implementation of a new digital number plate system and biometric vehicle tracking. The authority has already seen success with other digital transitions, such as the replacement of DP plates with tamper-proof stickers, which helped increase vehicle clearances from ports and boosted revenue from GH₵15 million in 2024 to GH₵27 million by late 2026.

These reforms have significantly improved the authority's contributions to national coffers. In 2025, the DVLA contributed GH₵17.7 million to the Consolidated Fund and GH₵80.4 million to the Road Fund, marking its first contribution to the Consolidated Fund since gaining semi-autonomous status in 2016. Alongside these financial achievements, the authority has expanded its physical presence by opening 30 new offices to improve service delivery and accessibility for motorists across the country.