Poor sanitation and inadequate waste management are costing Ghana more than GH¢6.2 billion every year through healthcare expenses, lost productivity and preventable deaths, according to a new study by the Institute of Statistical, Social and Economic Research (ISSER).
The findings have renewed calls for sanitation to be treated as a strategic economic investment rather than merely a social service, with researchers warning that continued underinvestment is imposing a significant burden on national development.
The study, presented during a high-level stakeholder engagement in Accra, found that diseases associated with poor sanitation—including malaria, cholera, typhoid, pneumonia and diarrhoea—are responsible for nearly 31.9 million lost workdays annually.
Researchers also estimated that poor sanitation contributes to more than 177,000 deaths across the country each year, highlighting the far-reaching consequences of inadequate waste management systems and environmental health challenges.
Led by Professor Peter Quartey and Dr. Kwame Adjei-Mantey, the study calculated that direct healthcare costs linked to sanitation-related diseases amount to approximately GH¢5.8 billion annually.
In addition, the economy loses an estimated GH¢650 million every year through reduced productivity, absenteeism and other work-related disruptions caused by illness.
According to the report, the scale of the losses far outweighs current public spending on sanitation.
Researchers noted that Ghana spends an average of just GH¢38 per tonne of waste generated, a level they describe as insufficient to address the increasing sanitation demands of rapidly growing urban and peri-urban communities.
The report argues that boosting investment in sanitation infrastructure and waste management systems could generate substantial economic returns for the country.
ISSER’s analysis suggests that under current spending levels, every GH¢1 invested in sanitation generates approximately GH¢180 in economic benefits.
However, if Ghana increases investment to levels comparable to lower-middle-income countries, the return could rise dramatically to about GH¢556 for every GH¢1 spent.
The study projects that national economic gains from enhanced sanitation investments could increase from roughly GH¢58 billion in 2025 to GH¢67.2 billion by 2032.
Researchers said these benefits would largely stem from lower healthcare costs, improved public health outcomes, reduced mortality rates and stronger workforce productivity.
The findings come as Ghana continues to grapple with mounting sanitation challenges, including recurring floods, poor drainage systems, indiscriminate waste disposal and inadequate waste collection infrastructure.
Rapid urbanisation has further intensified pressure on metropolitan, municipal and district assemblies, many of which struggle to mobilise sufficient resources to finance sanitation projects and maintain essential infrastructure.
The report notes that population growth in major urban centres is outpacing investments in waste collection services, landfill development, drainage networks and recycling facilities.
Beyond the public health implications, the study highlights the significant economic costs sanitation challenges impose on businesses.
Flooding, disease outbreaks and poor waste disposal practices can disrupt transportation networks, reduce labour productivity, increase healthcare costs and create operational challenges for businesses across both the formal and informal sectors.
As a result, ISSER argues that sanitation should be viewed not only as a health issue but also as a matter of economic competitiveness and sustainable development.
The researchers contend that improving sanitation systems could strengthen productivity, support business growth and enhance the resilience of urban economies.
The study therefore provides a strong case for increased government investment in sanitation infrastructure, improved financing for local assemblies and greater private sector participation in waste management services.
It also calls for stronger accountability mechanisms to ensure efficient use of resources allocated to sanitation projects.
Researchers further questioned the sustainability of Ghana’s current sanitation financing model, noting that many local authorities continue to depend heavily on limited internally generated funds and transfers from central government.
With the economic cost of poor sanitation now measured in billions of cedis annually, the report concludes that delaying investment in waste management infrastructure is becoming increasingly costly.
According to ISSER, every year of inadequate investment translates into avoidable healthcare costs, lost productivity and preventable deaths that continue to weigh heavily on the economy.
The researchers are therefore urging policymakers to elevate sanitation on the national development agenda and integrate it more deliberately into economic planning, urban development strategies and public health policy.
For Ghana, the study suggests the choice is straightforward: invest more aggressively in sanitation and waste management infrastructure now or continue absorbing billions of cedis in avoidable economic losses each year.
