Ghana ranks 18th in sub-Saharan Africa on revenue-to-GDP ratio at 15.7% – IFS

Ghana's revenue-to-GDP ratio ranks 18th among 25 sub-Saharan African nations at 15.7%, according to an Institute for Fiscal Studies assessment. The country trails the sub-Saharan African average of 20.1% in total government revenue and grants. This shortfall costs Ghana an estimated US$6.56 billion in potential mining revenue annually ahead of the 2027 Budget presentation.

Namibia leads the sub-Saharan African sample with a 31.3% revenue-to-GDP ratio, while Seychelles and Botswana rank third and fourth at 30.0% and 29.5%, respectively. Mozambique, South Africa, Zambia, Mauritius, Rwanda, and the Republic of the Congo follow in the top ten. In 2022, Ghana's actual revenue was GH¢96.65 billion (US$11.68 billion), while matching the regional average would have yielded an additional US$3.25 billion.

If Ghana's revenue-to-GDP ratio were 29.5%, like Botswana, the country could have collected up to GH¢181.23 billion (US$21.91 billion) in total revenue and grants, a US$10.23 billion increase. By 2025, nominal revenue reached GH¢224.88 billion (US$17.91 billion), unchanged at 15.7% of GDP, leaving a gap of GH¢63.38 billion. Ghana's dependence on domestic resource mobilisation and higher mining royalties is urged by the IFS, suggesting measures to curb port revenue leakages, reduce investment tax exemptions, and secure equity stakes in mineral extraction.