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Reading: Mahama’s Cabinet ends Zoomlion’s GHC1.3 billion Waste Management monopoly
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Mahama’s Cabinet ends Zoomlion’s GHC1.3 billion Waste Management monopoly

razak.bawa
Published June 13, 2025
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….YEA contract will not be renewed —

President John Mahama’s Cabinet, has taken decisive steps to end Zoomlion Ghana Limited’s decades-long dominance over waste management in the country, which has cost the country billions of Ghana cedis.

 This move, signals a new direction in which all future sanitation service contracts will be awarded through competitive procurement.

The previous contract, priced at GH¢918 million for two years, covered logistics, management fees, and allowances for sanitation workers. In recent years, this arrangement has been renewed at even higher rates, reportedly exceeding GH¢1.2 billion for another two-year cycle.

Under the new terms, each worker, often referred to as a “sweeper”, was expected to receive GH¢1,200 monthly. But it wasn’t signed as Zoomlion, and the Youth Employment Agency (YEA) couldn’t agree on many things.

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The government decision marks the end of what is considered the longest-running public contract in Ghana’s history, spanning 20 years.

 The government is now set to dismantle the single national contractor model that has allowed Zoomlion to monopolise sanitation services across metropolitan, municipal, and district assemblies.

Moving forward, sanitation contracts will be localised, enabling other private waste management companies to bid and participate through competitive tendering at the regional and district levels.

The decision not to renew the contract has led to tensions between Zoomlion and the YEA. Disagreements initially arose during the Akufo-Addo administration under the leadership of Kofi Baah Agyapong and have continued under Malik Basintale, who now serves as Acting CEO of the YEA under the Mahama government.

Mr Agyapong had expressed concern over the disparity between Zoomlion’s large sums paid and the meagre salaries received by its workers. Workers across the country also regularly agitated. Many sanitation workers had reportedly ceased operations, contributing to unsanitary conditions in Accra and other urban areas.

In April 2025, Malik Basintale, publicly criticised the contract terms on Facebook, describing them as exploitative.

 He disclosed that the existing arrangement under the previous government paid sanitation workers just GH¢250 monthly. Basintale blamed the Akufo-Addo administration for perpetuating the contract in its flawed form.

“For seven years and nine months, the NPP renewed the Zoomlion contract in its current state, paying the Ghanaian youth GH¢250,” he wrote.

Basintale added that he would not accept such low pay for any Ghanaian worker, just as he would not accept it for his own family members.

“For 7 years, 9 months, the NPP renewed the Zoomlion contract in its current state, paying the Ghanaian Youth/worker Ghc250”.

He vowed to prevent the contract’s renewal in its current form due to unfavourable terms and conditions.

“I promise on my honour as I stand by the grave of my late DAD, NOT to RENEW the contract in its CURRENT STATE or FORM. It is EVIL for the Previous government to have committed to this and I SHALL STOP IT,” he wrote.

“If my mother/Brother/Sister were a Zoomlion worker, I wouldn’t be happy with either of them taking Ghc250 as Salary and as such, I can’t be happy with you, your mother, father, brother or sister taking the same.”

He reaffirmed the Mahama-led government’s commitment to resetting the country to be better, which, according to him, includes the vision that every worker is paid satisfactorily for the work done.

Kofi Baah Agyapong responded with a message of support, while also clarifying that as of his departure on 25 January 2025, Zoomlion no longer had a valid sanitation contract with the YEA.

“I have always maintained that the sanitation module needed a complete overhaul, not just for better welfare for our workers, but also due to duplication with local assembly functions. That is both inefficient and unsustainable,” he noted.

He encouraged Basintale to pursue reforms with facts, respect for workers, and a commitment to value for money.

He wrote, “I’ve read your passionate Facebook post and I commend your boldness and sincerity in raising this important national issue. Indeed, our youth deserve better”.

“Let me, however, set the records straight for clarity: As of the time I officially handed over on January 25, 2025, Zoomlion did not have a contract with the Youth Employment Agency (YEA) as far as the sanitation module was concerned.

Mr. Agyapong wrote, “Like you, I have always maintained that the sanitation module needed a complete overhaul not only to ensure better welfare for our hardworking beneficiaries, but because the functions being executed were overlapping with those of the local assemblies. That, in my view, is both inefficient and unsustainable”.

He went on “There are board meeting minutes and official documents that speak to my stance — a position I took not out of politics, but principle. So I am glad to see that as a young leader, you share in this conviction and are committed to taking this forward”.

“I believe what we need now is not blame, but bold action — guided by facts, respect for the workers, and a firm commitment to value for money”.

“Let’s have that deeper national conversation you’ve called for. I’ll be tuning in to your live session tonight, and I hope we can all contribute ideas that lead to lasting solutions.”

This ongoing discourse led to a formal decision by the Mahama administration, including a pledge to recover any unauthorised payments made to Zoomlion following the contract’s expiration. In a letter dated 11 June 2025, signed by Callistus Mahama, Secretary to the President, and addressed to journalist Manasseh Azure Awuni, who had petitioned the Presidency.

The letter explicitly states, “All payments made to Zoomlion after the contract’s expiration will be thoroughly audited. No further payments will be authorised without proper verification, and any unauthorised payments will be recovered.”

The government also intends to increase the fees paid to sanitation sweepers to a more liveable income, addressing a long-standing welfare issue for these frontline workers.

Furthermore, the letter indicates a broader review of fumigation contracts, stating that those “that have not been performed satisfactorily will be reviewed and, where appropriate, terminated in accordance with their terms and upon the advice of the Attorney-General.”

“The contract between Youth Employment Agency (YEA) and Zoomlion Ghana Limited (‘Zoomlion’) has expired and will not be renewed,” the statement read, marking a significant shift in a longstanding arrangement that has attracted years of public scrutiny over value for money, transparency, and performance.

The Presidency also revealed that all payments made to Zoomlion after the contract’s expiration will undergo a thorough audit. No further payments will be made without verification, and any unauthorised disbursements will be recovered.

In a move towards reform, the Cabinet has directed that future sanitation contracts be subjected to competitive procurement processes. Rather than one nationwide contract, regional and district-based tenders will now be encouraged.

“This could reduce costs through competitive pricing and stimulate innovation, as companies compete on service quality to secure contracts,” the statement noted.

A Cabinet subcommittee will be responsible for designing the new contracting framework.

Meanwhile, the state is said to be owing Zoomlion millions of Ghana cedis.

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razak.bawa June 13, 2025
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