This article examines the developments and challenges of higher education in developing countries. Using a thorough qualitative interview of deans, directors and heads of Department of the University of Ghana, this paper draws on their analysis to discover unexplored issues that affect the universities in developing countries. The study identifies weakness in institutional policies and infrastructure deficiency of higher education in Ghana as key challenging factors. Findings also show congestion of students in academic facilities of learning, teaching overloads and lack of research facilities as key factors hampering academic development in higher education. Therefore, the work advocates for the development of policies that take into account the institutional realities in the field of higher education. Governmental policies aimed at enhancing higher education in developing economies must first improve the existing institutional set up for their chance of success.