Ghana Ranks 18th of 25 Sub-Saharan African Countries in Revenue Mobilisation, IFS Analysis Shows

Ghana’s total revenue and grants-to-GDP ratio stood at just 15.7% in 2022, ranking the country 18th out of a sample of 25 Sub-Saharan African countries and trailing the regional average by 4.4 percentage points, according to an analysis by the Institute for Fiscal Studies (IFS).

The Sub-Saharan African average for the sample stood at 20.1%, underscoring the scale of Ghana’s revenue mobilisation gap. Namibia recorded the highest ratio at 31.3%, followed by Seychelles (30.0%) and Botswana (29.5%). Mozambique (28.5%), South Africa (26.0%), Zambia (26.0%), Mauritius (22.8%), Rwanda (22.8%) and Congo Brazzaville (22.7%) completed the top ten .

The IFS said government revenue mobilisation in Ghana is “very weak,” with the country’s revenue falling far short of that of its African peers on average. “While the average total revenue and grants-to-GDP ratio of a sample of 25 Sub-Saharan African countries stands at 20.1%, Ghana’s total revenue and grants-to-GDP ratio stands at only 15.7%, ranking as low as 18th out of the 25 countries, and falling short of the average by 4.4 percentage points,” the analysis stated .

The Cost of the Gap

The direct implication, according to the IFS, is that the Government of Ghana is collecting revenues far below its potential. In 2022, Ghana collected GH¢96.65 billion in total revenue and grants — equivalent to US$11.68 billion — representing 15.7% of GDP.

Had Ghana’s ratio matched the Sub-Saharan African average of 20.1%, the government would have collected GH¢123.48 billion, or US3.25 billion more than it actually raised. Had Ghana performed at Botswana’s level of 29.5% — a resource-endowed African country comparable to Ghana — it would have collected GH¢181.23 billion, or US10.23 billion more than the actual figure .

The pattern has persisted. In 2025, Ghana collected GH¢224.88 billion, or US$17.91 billion, in total revenue and grants — still representing the same 15.7% of GDP, suggesting the structural revenue shortfall has not been meaningfully addressed despite nominal growth in collections .

The Wider Fiscal Context

The IFS findings land amid a broader debate over Ghana’s fiscal trajectory. The government has projected a fiscal deficit of 2.5% of GDP for 2026 and a primary surplus of 3.0%, building on the consolidation achieved under the IMF programme. But those targets rest on revenue assumptions that Ghana has historically struggled to meet. In the 2026 Budget, the government set a domestic revenue target of GH¢267.6 billion — 18.8% of GDP — a figure that, if achieved, would mark a significant improvement on the 15.7% ratio .

Ghana’s tax-to-GDP ratio has long hovered below 14%, well short of the 20% threshold that development economists consider necessary for sustained public investment. The government has attempted to close the gap through digitalisation of tax administration, including the integration of the Ghana Card as a tax identification number and the rollout of electronic VAT invoicing. Finance Minister Dr Cassiel Ato Forson has argued that these reforms will broaden the tax net without raising rates.

Why It Matters

The revenue gap has direct consequences. Ghana’s ability to fund infrastructure, education and healthcare from domestic resources — rather than borrowing or relying on donors — depends on raising the revenue-to-GDP ratio. The IFS analysis suggests that closing even the gap to the regional average would have yielded an additional US3 billion IMF programme .

The comparison with Botswana is instructive. Both countries are resource-endowed, but Botswana has historically managed its mineral wealth through disciplined fiscal institutions, including a rule-based approach to spending mineral revenues. Ghana, by contrast, has struggled with revenue volatility and leakages, particularly in the extractives sector.

For a country pursuing an investment-grade credit rating to lower borrowing costs, the revenue ratio is a critical metric. Rating agencies consistently cite weak domestic revenue mobilisation as a constraint on Ghana’s creditworthiness. Closing the gap with peers is not merely a fiscal technicality — it is central to the country’s ambitions for cheaper long-term financing and sustainable public investment.