Policy think tank IMANI-Africa has called for a major reset of Ghana’s fiscal framework, urging government to strengthen revenue mobilization and expenditure management to restore credibility to fiscal consolidation efforts.
In a submission, IMANI said revenue mobilization should combine four elements: broadening the base by rationalizing exemptions and gradually bringing the informal sector into the tax net; deepening underutilized instruments such as property rates and environmental excises; enhancing compliance through technology-driven monitoring and risk-based audits; and building trust by linking revenues to visible service delivery and fiscal transparency.
Key recommendations include completing the digitization and revaluation of property rates to ensure equitable sharing between the Ghana Revenue Authority and Metropolitan, Municipal and District Assemblies, expanding environmental excise levies on items such as plastics and sugary drinks, and investing in compliance enforcement capacity.
On the expenditure side, IMANI highlighted persistent losses from state-owned enterprises (SOEs), weak control over tax expenditures and hidden quasi-fiscal activities that continue to drain public resources. The report cited the 2022 State Ownership Report, which showed that nearly two-thirds of commercial SOEs were loss-making, with cumulative net losses exceeding GH¢5 billion in recent years.
The think tank recommended enforcing SOE performance contracts with measurable fiscal targets, prohibiting new government guarantees to loss-making firms unless part of a restructuring plan approved by Parliament, and publishing an annual Fiscal Risk Statement quantifying contingent liabilities.
IMANI also called for reforms to Ghana’s tax exemption regime to better support renewable energy adoption. While solar panels currently enjoy tax exemptions, complementary components such as batteries, inverters, mounting systems and installation services remain subject to statutory levies. The group proposed extending exemptions to all critical components and introducing a net metering framework in 2026 to encourage larger installations.
Finally, IMANI urged government to eliminate quasi-fiscal expenditures such as petroleum price smoothing and below-cost power tariffs that obscure the true fiscal position. It recommended conducting a comprehensive inventory of such activities, reclassifying valid social subsidies as explicit on-budget transfers, and phasing out all non-essential quasi-fiscal operations in line with IMF program benchmarks.
According to IMANI, implementing these measures would not only improve fiscal transparency but also align Ghana’s policies with its development and energy transition priorities.
Business Implications of IMANI’s Fiscal Reform Proposal
IMANI’s recommendations also carry clear opportunities for the private sector. The digitization and revaluation of property rates would formalize Ghana’s urban real estate market, improve valuation databases, and provide local governments with new revenue streams, while developers and lenders would benefit from a more transparent pricing environment.
In consumer markets, expanding environmental excise levies on plastics and sugary drinks would raise compliance costs for manufacturers but could accelerate innovation in biodegradable packaging and healthier product lines. This shift may open space for eco-friendly startups and position Ghana as a testbed for sustainable consumer goods.
The renewable energy sector stands to gain significantly if exemptions are extended beyond solar panels to batteries, inverters, and mounting systems. Lower installation costs combined with the introduction of net metering could trigger a surge in adoption, creating new energy entrepreneurs, attracting foreign investment, and stimulating demand for financing solutions.
Financial services and technology providers would also find opportunities in the compliance push. Stronger monitoring, data analytics, and risk-based audits would expand demand for fintech, regtech, and cybersecurity tools, while banks and insurers could build new service lines around taxpayer onboarding, digital payments, and risk management.
Capital markets may benefit as well. Enforcing SOE performance contracts and publishing an annual Fiscal Risk Statement would improve transparency, strengthening investor confidence in Ghana’s bonds and equities. Partial divestitures or strategic partnerships in loss-making SOEs could further open the door for public-private partnerships, unlocking institutional investment in sectors such as energy, transport, and telecoms.
In essence, while IMANI frames its proposals as fiscal consolidation measures, they also present avenues for growth across real estate, consumer goods, renewable energy, financial technology, and capital markets.
