ActionAid demands crackdown on illicit cash flows

By: Ernest Afram

Civil society organization ActionAid Ghana has called on the government and stakeholders to intensify efforts to plug illicit financial flows (IFFs), warning that these leakages continue to deprive the country of critical resources needed for sustainable national development.

The civil society organization believes that reducing the scale of IFFs and strengthening domestic revenue mobilization would significantly ease Ghana’s fiscal pressures and reduce reliance on external borrowing.

Speaking in Accra, Country Director of ActionAid Ghana, John Nkaw, said it is time for a coordinated national response to tackle the structural weaknesses that allow billions of cedis to slip through the cracks of the public finance system.

“ActionAid Ghana urges action on illicit financial flows to boost development. Tackling persistent leakages in public finances could significantly reduce the country’s dependence on external borrowing and create the fiscal space needed for more equitable investment in key sectors like education, health, and agriculture,” Mr. Nkaw said.

According to Mr. Nkaw, the clampdown on financial leakages should go hand in hand with intensified anti-corruption measures.

He said stakeholders, including civil society, private actors, and citizens—must work in concert with the government to ensure greater transparency and accountability across public institutions.

“We should work with and support the government in its clampdown on corruption and ensure that all those monies are available for development financing,” Mr. Nkaw noted.

Beyond domestic reforms, ActionAid Ghana is also urging the government to take a more strategic approach to the management of loans secured from international partners.

Mr. Nkaw stressed the importance of ensuring that multilateral and bilateral funds particularly from institutions such as the International Monetary Fund (IMF) and World Bank are channeled into productive and sustainable initiatives that benefit the broader population.

“Government needs to be intentional with its bilateral and multilateral donors to ensure that the loans that come into Ghana are invested in a more productive, sustainable way,” he said, highlighting locally led initiatives such as schools, health centers, and agro-based projects as examples of impactful investments.

ActionAid maintains that loans invested in visible, community-based infrastructure not only create jobs but also stimulate local economies and support inclusive growth.

Mr. Nkaw believes that plugging financial loopholes and redirecting resources into strategic development priorities will help Ghana build a more self-reliant and resilient economy.

He noted that at a time when global financial conditions remain uncertain and donor inflows unpredictable, Ghana must look inward and optimize its domestic resources through improved governance and fiscal discipline.