A new policy brief by the Institute of Statistical, Social and Economic Research (ISSER) has projected that significantly increasing investment in Ghana’s sanitation and waste management sector could generate billions of cedis in economic gains by reducing healthcare costs and improving labour productivity.
The report, titled Waste or Wealth? The Economic Returns to Sanitation Investment in Ghana, argues that sanitation should be treated as a strategic economic investment rather than simply an environmental or public health obligation.
According to the study, raising waste management expenditure from the current average of GH¢38.78 per tonne of waste to GH¢1,028 per tonne—the average investment level for lower-middle-income countries—could generate annual economic benefits of GH¢556 for every GH¢1 invested.
ISSER estimates that under this higher investment scenario, Ghana could realise annual economic benefits ranging from GH¢58.1 billion in 2025 to GH¢67.2 billion by 2032.
The report attributes about 55.3 per cent of these projected gains to reduced healthcare spending as sanitation-related diseases decline, while the remaining 44.7 per cent would come from improved productivity through fewer premature deaths, reduced absenteeism from work and school, and lower productivity losses associated with illness.
Researchers further project that sanitation-related illnesses could decline by 97.4 per cent, while deaths linked to poor sanitation could fall by 81 per cent if recommended investment levels are achieved.
The study argues that Ghana’s current sanitation financing model is economically costly, with inadequate investment continuing to impose avoidable financial burdens on households, businesses and government through disease outbreaks, lost productivity and rising healthcare expenses.
Instead, ISSER is urging policymakers to recognise sanitation spending as a long-term investment capable of strengthening public health, boosting economic growth, creating jobs and supporting the development of the circular economy.
Beyond the direct health and economic gains, the researchers say closing Ghana’s sanitation investment gap would improve environmental conditions, strengthen human capital, encourage innovation and enhance the quality of life across the country.
The findings come as Ghana continues to grapple with the economic and human cost of recurring floods, with the report arguing that sustained investment in waste management and sanitation could also reduce flooding by improving drainage systems and preventing the clogging of waterways, ultimately turning a persistent national challenge into an opportunity for sustainable development.
