Professor Isaac Boadi, Dean-Faculty of Accounting and Finance, University of Professional Studies, Accra, has said that Ghana is not broke but rather it is bleeding financially.
He believes the country’s real battle is not between political parties, but between Ghana and corruption. “Until we win this fight, our fiscal stability will remain fragile,” he added.
Prof. Boadi highlighted that Ghana loses an estimated US$9.02 billion every year,a sum largely driven by tax inefficiencies, illicit trade, and resource mismanagement.
To put that in context, this amount is six times the cost of the Free Senior High School policy, and nearly five times the budget for the National Health Insurance Scheme.
According to his analysis, the Ghana Revenue Authority (GRA) alone loses about US$3 billion annually due to illicit financial flows, roughly 30% of its potential tax collections.
He noted that high-net-worth individuals and foreign companies often exploit legal loopholes to evade taxes.
In addition, corruption at the ports and in customs operations drains another US$515 million each year, based on a 2023 World Bank report. These losses, Prof. Boadi stressed, represented missed opportunities to improve education, healthcare, and infrastructure.
The extractive industries are also bleeding revenue. In 2022, Ghana lost an estimated US$2 billion in taxes and royalties from gold mining operations. The Minerals Commission attributes this largely to tax evasion by 60% of small-scale miners.
The oil and gas sector adds another layer of opacity, with US$1.5 billion in unaccounted revenues in 2023, largely due to unclear production-sharing agreements.
In addition, environmental degradation is also costing the nation. Illegal logging alone results in US$250 million in annual losses.
Furthermore, the informal sector, which employs about 80% of the workforce, contributes to an estimated US$15.6 million in losses annually, primarily due to weak tax compliance.
Other areas of concern include the Ports and Harbours Authority, which reportedly loses US$250 million each year from undervalued imports and collusion.
Meanwhile, public procurement processes account for a further US$170 million in losses, linked to inflated contracts and untracked expenditures.
Prof. Boadi identified four core issues driving these financial hemorrhages: weak enforcement, outdated systems, entrenched corruption, and lack of transparency.
He argued that the current manual systems for processing revenue make it easy for corruption to thrive, and he called for bold reforms.
“We must digitalize the entire revenue collection system, eliminating human interfaces will reduce opportunities for corruption and enhance efficiency,” hr said.
He also stressed the importance of collective action, urging cooperation between government and civil society. “We cannot afford silence any longer.”
Despite the outlook, Prof. Boadi noted a small sign of progress: Ghana’s tax-to-GDP ratio rose to 15.9% in 2024. But he warned that real change will only come with faster and deeper institutional reforms.
“The question is not whether we can fix this, but whether we are willing to act, and act urgently,” he said.
