An Institute of Statistical, Social and Economic Research report estimates annual benefits of GH¢48 billion through targeted investment in waste management and sanitation. The country currently loses over GH¢6 billion each year due to inefficiencies, healthcare costs and lost productivity.
Ghana could turn its waste challenge into a powerful engine of economic growth. This is the key finding of the report, “An Economic Analysis of the Benefits of Adequate Investment in Waste Management and Sanitation in Ghana,” published by the Institute of Statistical, Social and Economic Research (ISSER). According to the study, by 2032 the country could unlock nearly GH¢48 billion (approximately US$4.5 billion) per year through adequate investment in the sector.
The figures are particularly significant considering that Ghana generates an estimated 1.1 million tonnes of plastic waste annually. At present, inefficient waste and sanitation systems cost the country more than GH¢6 billion (US$562.6 million) every year. Of this amount, GH¢5.5 billion (US$515.7 million) is linked to healthcare expenses related to sanitation-associated diseases, while approximately GH¢650 million (US$60.9 million) is attributed to lost productivity.
The social impact is equally severe: poor waste management is associated with more than 107,000 premature deaths annually.
According to ISSER Director Peter Quartey, a modernized waste management system would improve public health, create jobs, increase productivity, and foster new industrial value chains based on material recovery and energy generation. The report outlines a “best-case scenario” in which additional investment of approximately GH¢1,028 (US$96.40) per tonne of waste could yield annual economic benefits of up to GH¢47.9 billion (US$4.49 billion) by 2032.
Key development areas identified include compost production, recycling, and waste-to-energy initiatives, with the potential to generate up to 1,484 megawatts of electricity from waste streams.
Despite this significant potential, the gap between opportunity and current spending remains wide. Ghana’s 261 local assemblies collectively allocate only about GH¢180 million (US$16.88 million) per year to waste management, highlighting the urgent need for structural reforms, increased funding, and stronger public-private partnerships.
The report also points to international benchmarks. The Circular Economy Action Plan of the European Union has incentivized investment in recycling and waste-to-energy technologies, while countries such as Sweden and Japan demonstrate how municipal waste can become a stable source of energy and secondary raw materials.
For Ghana, ISSER concludes, the choice is strategic: continue to incur multi-billion-cedi losses due to underinvestment, or treat waste as an industrial asset and transform the sector into a driver of sustainable economic growth by 2032.
