Ghana ranks 18th in Sub-Saharan Africa in terms of total revenue-to-GDP ratio

In 2022, Ghana ranked 18th among 25 Sub-Saharan African countries in terms of the total revenue-to-GDP ratio, according to the Institute for Fiscal Studies (IFS). Ghana's revenue-to-GDP ratio stood at 15.7%, which is significantly lower than the Sub-Saharan African average of 20.1%. Namibia topped the list with a revenue-to-GDP ratio of 31.3%, followed by Seychelles (30.0%) and Botswana (29.5%).

Ghana's revenue mobilization was found to be weak, as its revenue was considerably lower than the average of its peers in Africa. The IFS noted that while the average revenue-to-GDP ratio of the 25 Sub-Saharan African countries was 20.1%, Ghana's ratio was only 15.7%, placing the country 18th out of the 25.

The consequences of Ghana's low revenue-to-GDP ratio are significant. If Ghana matched the Sub-Saharan African average ratio, it could have collected an additional US$3.25 billion in revenue in 2022. In fact, even if Ghana's ratio were as high as Botswana's 29.5%, the country could have collected up to US$10.23 billion more in revenue. This amounts to a substantial increase in the government's potential revenue collection.