Ghana is estimated to have lost about US$54.1 billion to trade-related illicit financial flows (IFFs) between 2013 and 2022, placing the country third among Africa’s most affected nations, according to a new report by Global Financial Integrity (GFI).
The report, titled Trade-Related Illicit Financial Flows in Africa, 2013–2022, points to longstanding structural weaknesses in Ghana’s international trade system, particularly in its engagement with global trading partners.
Using a methodology that compares countries’ declared exports with what their trading partners record as imports, GFI estimates that nearly 28 per cent of Ghana’s total trade over the period may have been misinvoiced, mispriced or entirely unaccounted for. In practical terms, this suggests that almost US$3 out of every US$10 in Ghana’s international trade could be linked to illicit practices.
Although South Africa and Nigeria recorded higher absolute losses estimated at US$478 billion and US$77.7 billion respectively Ghana’s losses exceed those of several regional peers, including Côte d’Ivoire (US$47.7 billion) and Kenya (US$47.5 billion).
According to GFI, Ghana’s elevated exposure is largely driven by opacity in key export sectors, notably gold, cocoa and crude oil. Pricing irregularities, combined with unequal bargaining power between local producers and multinational buyers, create conditions that allow systematic under-invoicing and revenue leakage.
The report also notes that trade with developed economies, including G7 countries, accounted for an estimated US$20.5 billion in illicit outflows over the decade. This represents roughly 25 per cent of Ghana’s total trade with advanced economies, highlighting the scale of wealth transfer from natural resource exports to the Global North.
Beyond the macroeconomic impact, GFI draws attention to the social consequences of persistent illicit financial flows. Countries with high IFF exposure, the report finds, spend on average 25 per cent less on health and 58 per cent less on education than comparable peers.
For Ghana, GFI argues that even a partial recovery of the US$54.1 billion lost could significantly expand funding for schools, healthcare facilities and critical infrastructure, many of which remain under-resourced.
To curb the outflows, the report recommends that Ghana modernise its customs administration, including the deployment of advanced data analytics and risk-based inspection systems capable of detecting suspicious trade transactions in real time.
It also calls for the creation of comprehensive beneficial ownership registries to reveal the true owners of companies and trusts, thereby limiting the use of shell entities to conceal illicit gains.
In addition, GFI encourages the adoption of blockchain technology or similar digital tools to enable the automatic exchange of trade valuation data between countries, helping to close information gaps that facilitate trade misinvoicing.
Strengthening regional cooperation is identified as another critical step, with the African Continental Free Trade Area (AfCFTA) highlighted as a potential platform to harmonise invoice verification across borders and improve the detection of discrepancies.
Finally, the report stresses the need for robust legal enforcement, urging authorities to criminalise trade misinvoicing, impose meaningful penalties, and provide protections for whistleblowers who expose tax evasion and related offences.
GFI warns that without decisive reforms, Ghana risks undermining its economic sovereignty and aspirations for inclusive growth. Conversely, effective action, the report notes, could help reposition the country from a net exporter of illicit outflows to one that more effectively harnesses its trade and natural resource wealth for domestic development.
