Experts from the University of Ghana’s Institute of Statistical, Social and Economic Research (ISSER) are calling on government to reposition waste management as a driver of economic growth rather than merely a public health issue.
In a recent report titled “The High Cost of Improper Waste Management and Poor Sanitation on Ghana’s Economy,” the researchers argue that investments in sanitation infrastructure could unlock billions in economic value, create jobs, and promote environmental sustainability.
Drawing on World Health Organization (WHO) data, the report notes that every US$1 invested in sanitation can yield up to US$5.50 in economic returns through higher productivity, lower healthcare costs, and reduced mortality. For Ghana, a one-percent investment of GDP — about US$883 million — could generate an estimated US$4.86 billion in returns.
“Proper waste management is not just about clean cities,” the report emphasizes. “It’s about saving lives, reducing costs, and building a stronger, more productive economy.”
The study showcases international examples where recycling, composting, and waste-to-energy initiatives have boosted employment and advanced the circular economy. It also highlights that the global waste management industry — valued at US$1.4 trillion in 2024 — is projected to reach US$2.4 trillion by 2033, creating vast opportunities for countries like Ghana to tap into the green economy.
Beyond its economic potential, proper sanitation also safeguards public health. The authors cite Ghana’s October 2024 cholera outbreak as a stark reminder of the human and financial toll of neglect. Such crises divert public funds from development projects and reduce productivity due to illness and healthcare costs.
The paper further warns that Ghana’s current sanitation financing model is unsustainable. Despite collecting over GHS 500 million annually through the Sanitation and Pollution Levy, less than 5% of the funds are reinvested into sanitation projects.
The researchers urge the government to show “strong political will” by ring-fencing a larger share of these revenues for waste management infrastructure and innovation. They also call for stronger private sector participation and the use of modern recycling technologies to close funding gaps and enhance efficiency.
“Cleaner cities attract investors, tourists, and jobs,” the report states. “Waste can become wealth — if managed strategically.”
The ISSER team concludes that sanitation reform presents a triple benefit for Ghana’s economy, health, and environment. “Investing in waste management is not a cost,” they assert. “It’s an opportunity to build a sustainable, prosperous, and resilient Ghana.”
Contributors: Prof. Peter Quartey, Prof. Ebo Turkson, Prof. Yaa Adobea Owusu, Dr. Kwame Adjei-Mantey, and Dr. Ralph Armah — Institute of Statistical, Social and Economic Research (ISSER), University of Ghana.
