Ghana’s economy loses an estimated 200 million dollars every year due to the impact of natural disasters, according to the National Disaster Management Organisation (NADMO).
The figure, representing nearly two percent of the country’s Gross Domestic Product (GDP), highlights the growing financial and social cost of climate-related shocks on national development.
NADMO estimates that over two million people are affected by floods, droughts, storms, and other natural hazards annually. The losses, which include damage to infrastructure, farmlands, and livelihoods, continue to weigh heavily on government finances and local economies.
At the relaunch of the National Platform for Disaster Risk Reduction and Climate Change Risk Management in Accra, the Director-General of NADMO, Major (Rtd) Dr Joseph Bikanyi Kuyon, called for stronger investments in disaster preparedness to reduce future losses.
He said the country needed to shift focus from reaction to prevention, as it was far more cost-effective to prepare for disasters than to rebuild after they occur.
“If you invest one dollar in disaster risk reduction, you save an average of about 5.50 dollars in disaster response and recovery,” Dr Kuyon said.
He attributed Ghana’s recurring losses partly to the long dormancy of national coordination platforms over the past 15 years, which resulted in weak collaboration among key institutions.
A representative of the United Nations Office for Disaster Risk Reduction (UNDRR), Ms Isabel Njihia, supported the data presented by NADMO and cited a World Bank report indicating that over 4.3 million Ghanaians are exposed to a severe, one-in-100-year flood event.
She revealed that flood incidents alone cost Ghana about 100 million dollars annually, warning that the figure could double by 2050 if no decisive action is taken to strengthen climate adaptation.
Ms Njihia said the 2023 spillage of the Akosombo and Kpong dams in the Volta Basin, which displaced more than 26,000 people and caused extensive destruction to homes, farms, and infrastructure, was a reminder of the scale of human and economic loss the country continues to face.
Economists and disaster management experts have warned that Ghana’s annual disaster-related losses are not only a humanitarian concern but also a major economic threat.
Frequent flooding, drought, and other extreme events reduce agricultural productivity, damage public infrastructure, and divert limited national resources from key development priorities such as education, health, and roads.
“Every flood or drought takes away resources that could have gone into building schools, hospitals, and roads,” said a disaster management analyst at the event. “The economic case for investing in disaster prevention is now undeniable.”
Dr Kuyon said the relaunch of the national platform would serve as a renewed commitment to coordinated action among government agencies, private sector partners, and development organisations to integrate disaster risk management into national and local planning.
He emphasised that disaster preparedness should be viewed as a critical pillar of economic policy, not merely as an emergency response measure.
“Our goal is to move from a response-driven system to one that is prevention-led,” he said. “Resilience must be seen as an investment in sustainable development, not a cost to be delayed.”
NADMO believes that with consistent funding, stronger partnerships, and effective early warning systems, Ghana can reduce its exposure to climate risks and protect both lives and the economy from future shocks.
