Ghana could generate GHS 556 in annual economic benefits for every GHS 1 invested in improving waste management and sanitation systems. This return is possible if the country increases spending to levels recommended for lower-middle-income economies. This finding comes from a new policy brief by the Institute of Statistical, Social and Economic Research (ISSER).
This substantial economic return is triggered by an estimated increase in investment from GHS 38.78 per tonne of waste to GHS 1,028 per tonne. This higher spending matches the average for other lower-middle-income countries. Such an investment would significantly reduce disease, boost productivity, and save billions of cedis annually. The policy brief argues that sanitation should be viewed as a high-return economic investment.
This aligns with Ghana's broader economic goals of sustainable development and public health improvement. The country regularly faces devastating floods, which highlight the urgent need for better infrastructure and sanitation. Investing in this sector would not only prevent environmental damage but also strengthen human capital and stimulate economic growth. This approach moves sanitation from a mere expenditure to a strategic economic driver.
The ISSER report, titled "Waste or Wealth? The Economic Returns to Sanitation Investment in Ghana," projects significant improvements. It states that sanitation-related morbidity would fall by 97.4 per cent, and deaths would reduce by 81 per cent. These improvements would translate into annual economic benefits from GHS 58.1 billion in 2025 to GHS 67.2 billion by 2032. Researchers identified healthcare cost savings (55.3 per cent) and productivity gains (44.7 per cent) as the main drivers of these benefits.
The report's findings imply a clear path for policymakers to transform a persistent challenge into an economic opportunity. Decision-makers should consider integrating sanitation investments into national development plans. This strategic shift could strengthen public health, improve labour productivity, and create employment opportunities. Markets will likely respond positively to public finance decisions that prioritise such high-yield investments.
Currently, Ghana's investment in waste management already yields economic returns, with every GHS 1 invested generating GHS 180 in discounted annual benefits. However, adopting the higher investment benchmark of GHS 1,028 per tonne would more than triple these returns. Such a substantial increase in returns demonstrates the untapped potential within the sanitation sector. This can enhance the overall quality of life for citizens and foster innovation in the circular economy.
The current approach to sanitation financing is deemed economically unsustainable by the researchers. Inadequate investment continues to impose avoidable costs on households, businesses, and the government. These costs manifest as healthcare burdens and reduced economic output due to illness and absenteeism. The report encourages policymakers to recognize sanitation as a vital investment for Ghana’s long-term prosperity. This includes reducing flood risks and improving environmental conditions across the nation.