A sample of 25 Sub-Saharan African countries and the sizes of their total revenue and grants-to-Gross Domestic Product (GDP) ratios in 2022 placed Ghana in the 18^th position.

According to the Institute for Fiscal Studies (IFS), Ghana’s revenue-to-GDP ratio is estimated at 15.7%.

This is compared with the Sub-Saharan African average of 20.1%.

Namibia recorded the highest revenue-to-GDP ratio of 31.3% in Sub-Saharan Africa, followed by Seychelles (30.0%) in 3^rd position and Botswana (29.5%) in 4^th position.

From 5^th to 10^th position are Mozambique (28.5%), South Africa (26.0%), Zambia (26.0%), Mauritius (22.8%), Rwanda (22.8%) and Congo Brazzaville (22.7%).

According to IFS, government revenue mobilisation is very weak in Ghana, as its revenue falls far short of that of its peers in Africa, 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”.

Implications of Low Revenue & Grants to GDP Ratio

IFS said the direct implication of the low total revenue and grants-to-GDP ratio is that the Government of Ghana is actually collecting revenues in monetary terms far below its potential.

In 2022, IFS said the Government of Ghana actually collected GHȻ96.65 billion in total revenue and grants, representing 15.7% of GDP. This amount was equivalent to US$11.68 billion in 2022.

However, it pointed out that if Ghana’s total revenue and grants-to-GDP ratio were the same as the Sub-Saharan African average of 20.1%, Ghana would have collected GHȻ123.48 billion, equivalent to US$14.93 billion.

It explained that this is US$3.25 billion more than what the government actually collected in 2022. “In fact, if Ghana’s total revenue-to-GDP ratio in 2022 was 29.5% as Botswana’s, an African country with a heavy resource endowment like Ghana, Ghana would have collected as much as GHȻ181.23 billion or US$21.91 billion in total revenue and grants”.

This was as large as US$10.23 billion more than the US$11.68 billion the government of Ghana actually collected in 2022.

In 2025, the Government of Ghana actually collected GHȻ224.88 billion or US$17.91 billion in total revenue and grants, representing the same 15.7% of GDP.

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Ghana ranks 18th in Sub-Saharan Africa in terms of total revenue-to-GDP ratio

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