Ghana has ranked 18th among 25 Sub-Saharan African countries in terms of total revenue and grants as a percentage of Gross Domestic Product (GDP), according to the Institute for Fiscal Studies (IFS).
The institute estimates Ghana’s revenue-to-GDP ratio at 15.7%, significantly below the Sub-Saharan African average of 20.1%, indicating a shortfall of 4.4 percentage points.
Namibia recorded the highest ratio of 31.3%, followed by Seychelles with 30.0% and Botswana with 29.5%. Mozambique, South Africa and Zambia also recorded relatively high ratios of 28.5%, 26.0% and 26.0%, respectively.
The IFS says Ghana’s weak revenue mobilisation means government is collecting far less revenue than its potential, limiting the resources available to finance public expenditure and development programmes.
According to the institute, Ghana collected GH¢96.65 billion in total revenue and grants in 2022, equivalent to US$11.68 billion and representing 15.7% of GDP.
It estimates that if Ghana had achieved the Sub-Saharan African average of 20.1% in the same year, government would have mobilised GH¢123.48 billion, equivalent to US$14.93 billion, representing an additional US$3.25 billion.
The institute further noted that if Ghana had recorded Botswana’s revenue-to-GDP ratio of 29.5%, government revenue and grants would have reached GH¢181.23 billion, equivalent to US$21.91 billion. This would have been US$10.23 billion more than the actual amount collected.
The IFS also indicated that government collected GH¢224.88 billion, equivalent to US$17.91 billion, in total revenue and grants in 2025, maintaining a revenue-to-GDP ratio of 15.7%.
Story by Ama Frimpomaa