BY Issah Olegor
The National Democratic Congress government has justified its decision to reassess—and potentially cancel—its operational contract with medical drone delivery company Zipline, citing cost overruns, limited efficiency in reaching remote areas, and the need to realign national health expenditure with more urgent priorities.
The clarification was issued by the Minister of Health, Kwabena Mintah Akandoh, during the Government Accountability Series in Accra, where he outlined the health sector highlights of the 2026 Budget.
Presenting what he described as “the most people-focused and health-centred budget in recent years,” the Minister announced a record GH¢34 billion allocation to the health sector.
Out of this, GH¢11 billion has been dedicated to stabilising and expanding the National Health Insurance Scheme (NHIS), which now covers over 20 million subscribers.
To strengthen the financial viability of the scheme, he confirmed that government will introduce a 120% increase in NHIS tariffs next year to reflect the true cost of healthcare services.
The Minister also outlined a number of major interventions expected to transform primary healthcare delivery.
He announced that the Free Primary Healthcare Package, valued at GH¢1.5 billion, will be rolled out nationwide, providing essential services to millions of Ghanaians.
Additionally, the Ghana Medical Trust Fund (MahamaCares)—a flagship programme under the new administration—has become fully operational and will provide GH¢2.3 billion in support to reduce out-of-pocket payments for patients.
As part of the government’s infrastructure agenda, Akandoh disclosed that construction works on three new regional hospitals in the Savannah, Oti, and Western North regions will commence in 2026, backed by an initial budget of GH¢600 million.
He insisted that “no uncompleted health project will be abandoned,” indicating a directive from the presidency to complete existing facilities before embarking on new ones.
The Minister also highlighted human resource improvements within the health sector, noting that GH¢16.7 billion has been allocated for the payment of recently recruited nurses, the deployment of 700 medical doctors, and the clearance of outstanding trainee allowances.
Government’s Explanation on Zipline Contract Review
Responding to public concern over reports that Zipline is scaling down operations, Akandoh provided the clearest explanation yet on why the drone service contract is being reviewed.
He revealed that Zipline’s original agreement was structured on the premise that the company would expand and operate without depending on Government of Ghana funds. However, the Minister said this expectation has not been realised.
According to him, the state has instead been paying “over US$500,000 every month” to sustain Zipline’s operations—an expenditure he described as “significant and increasingly difficult to justify under current economic constraints.”
Akandoh further disclosed that an internal audit of Zipline’s service delivery raised key concerns.
The review showed that:
Only 12% of Zipline’s drone flights were directed to hard-to-reach communities, the very areas the service was originally designed to support.
A large portion of the deliveries were for non-essential or routine items, which he said could be transported efficiently through existing ground logistics.
The Minister emphasised: “Government has met Zipline several times and continues to engage them. We must ensure value for money. Any future arrangement must align with the president’s directive that public spending must be efficient, justifiable, and targeted.”
He concluded by reiterating that the review does not necessarily mean an immediate termination of the partnership but forms part of a broader effort to realign health sector funding with national priorities—especially given competing demands for hospital infrastructure, primary healthcare expansion, and NHIS sustainability.
