Ghana Loses $54 Billion to Trade-Related Illicit Flows
By Praisebell Rosemond Larbi
Ghana lost an estimated US$54.1 billion to trade-related illicit financial flows (IFFs) between 2013 and 2022, ranking it third among Africa’s top ten affected countries, according to a new report by Global Financial Integrity (GFI).
The report, titled “Trade-Related Illicit Financial Flows in Africa, 2013–2022”, highlights structural vulnerabilities in Ghana’s international trade, particularly in the pricing, reporting, and tracking of major export commodities. Using data that compares countries’ reported exports against what trading partners record as imports, GFI found that nearly 28% of Ghana’s trade may be misinvoiced, mispriced, or unaccounted for. In practical terms, this means almost $3 out of every $10 in international trade involving Ghana could be leaking abroad.
While larger economies such as South Africa ($478 billion) and Nigeria ($77.7 billion) top the continent’s losses, Ghana exceeds regional peers like Côte d’Ivoire ($47.7 billion) and Kenya ($47.5 billion). The report points to the opacity in Ghana’s gold, cocoa, and oil sectors, where pricing irregularities and unequal power dynamics with multinational buyers facilitate under-invoicing and wealth extraction.
Notably, trade with developed nations, including the G7 economies, accounted for $20.5 billion in losses over the decade, representing roughly 25% of Ghana’s exports to advanced economies. This underscores a significant outflow of resources from Ghana’s natural wealth to the Global North.
The human cost is substantial. Countries experiencing high illicit flows typically spend 25% less on health and 58% less on education than comparable peers. For Ghana, even partially reclaiming these funds could transform public service delivery, financing schools, clinics, and critical infrastructure.
To curb the outflows, GFI recommends modernizing Ghana’s customs systems with advanced data analytics and risk-based inspections to flag suspicious transactions in real time. The report also calls for comprehensive beneficial ownership registries to reveal the true owners of companies and trusts, making it harder for shell entities to mask illicit gains.
Additionally, GFI highlights the potential of blockchain technology or similar platforms to automatically exchange trade valuation data, closing the information gaps between trading partners. Regional cooperation is also emphasized, with the African Continental Free Trade Area (AfCFTA) positioned as a tool to harmonize invoice verification across borders.
Finally, GFI stresses robust legal enforcement, urging governments to criminalize trade misinvoicing, impose meaningful penalties, and protect whistleblowers exposing tax evasion.
The report warns that without decisive reform, Ghana’s economic sovereignty and inclusive growth ambitions remain at risk. Implementing these measures, however, could turn the country from a net exporter of illicit flows into one that harnesses its wealth for domestic development.
