Ghana places third among top-10 nations affected by illicit financial flows…loses $54.1 billion in a decade -GFI report reveals

Illicit financial flows (IFF) represent a formidable barrier to Africa’s inclusive growth and economic sovereignty. A new report released by Washington-based think-tank Global Financial Integrity (GFI), titled Trade-Related Illicit Financial Flows in Africa, 2013–2022, estimates trade-related value gaps for all Sub-Saharan African nations from 2013 – 2022.

This report highlights how, over the last decade, vast sums have been illicitly drained from African economies largely through manipulated trade transactions at great cost to public welfare and development prospects.

The Africa-specific data and analysis presented show both the concentration of this issue in certain countries and its pervasive impact across the entire continent.

Ghana is estimated to have lost $54.1 billion to IFFs over the past decade, placing it third among the top-10 most affected nations in sub-Saharan Africa.

Africa’s top-10 IFF losers

South Africa tops the continental list with $478.1 billion in cumulative trade value gaps, accounting for 42 percent of all trade-related IFFs in sub-Saharan Africa.

Nigeria ranks second with $77.7billion, followed by Ghana ($54.1billion), Côte d’Ivoire ($47.7billion) and Kenya ($47.5billion).

The rest of the top-10 include Zambia ($35.8 billion), Tanzania ($35.5 billion), Angola ($35.4 billion), Senegal ($25.5 billion), and Ethiopia ($24.6 billion).

The losses, according to the report is largely driven by trade misinvoicing and money laundering, represent one of the most severe capital leakages on the African continent and continue to undermine domestic revenue mobilisation and development financing.

It estimates that the total trade value gap across sub-Saharan Africa reached US$152.9billion in 2022, with no country in the region making meaningful progress on curbing such losses during the period.

Trade misinvoicing, the deliberate under- or over-statement of export and import values on invoices, is widely recognized as a dominant channel for IFFs. Earlier studies suggest that trade mispricing alone may account for $30–$52 billion in financial flow value gaps in Africa’s trade each year, representing a large share (possibly over half) of total IFF volumes.

The report explained that trade misinvoicing on Customs invoices was identified as the dominant channel for illicit capital flight.

For Ghana, a major exporter of gold, cocoa, and crude oil, manipulated trade transactions have proved particularly damaging.

The report shows that approximately 28 percent of the country’s total trade value was affected by misinvoicing over the decade, exceeding the regional average of 24 percent.

This implies that nearly $3 out of every $10 in international trade was implicated in illicit flows.

Illicit outflows rose sharply toward the end of the period, increasing from $4.7 billion in 2013 to a peak of over $9 billion in 2021, before easing to $6 billion in 2022.

Ghana’s cumulative losses trail only South Africa and Nigeria, firmly placing the country among the three most affected economies in the region.

“Illicit financial flows represent a formidable barrier to Africa’s inclusive growth and economic sovereignty. The continent has effectively become a net creditor to the world, as cumulative illicit capital flight has exceeded its external debt stock,” GFI noted.

The report revealed that South Africa recorded the largest trade value gap at US$ 238.4 billion in trade with advanced economies, which was far ahead of Nigeria’s $29.7 billion.

Côte d’Ivoire followed with $24.6 billion, Ghana at $20.5 billion, and Angola with $19 billion.

These figures highlight significant mispricing in transactions with developed trading partners in Europe and North America, where complex supply chains and pricing opacity create opportunities for abuse.

Smaller economies such as Gambia and Comoros, despite modest trade volumes, face some of the highest proportional risks… reflecting deep-seated structural vulnerabilities.

High-value commodity exports (oil, gold, diamonds, etc.) are particularly vulnerable to misinvoicing, given the opacity in pricing and power imbalances between African exporters and the multinational buyers of these commodities.

In effect, the continent has been a net creditor to the world, as cumulative illicit flight capital has exceeded Africa’s external debt stock in recent years. Moreover, these estimates are likely conservative given the hidden nature of illicit transactions; actual losses could be significantly higher.

The report warns that high IFFs have severe implications for public services and human development. Countries with elevated illicit outflows spend, on average, 25 percent less on health and 58 percent less on education than peers with lower losses.

For Ghana, the billions lost annually translate directly into funding gaps for schools, hospitals, and critical infrastructure while increasing reliance on borrowing. For the country’s leadership to reverse an estimated $54.1 billion capital loss over a decade is not only a fiscal necessity but a prerequisite for financing sustainable development, strengthening accountability, and unlocking long-term economic potential.

Across Africa, GFI estimates that tax revenue losses linked to IFFs amount to about $17 billion annually, exacerbating debt pressures.

To stem the losses, GFI urged governments to strengthen Customs capacity, deploy advanced data analytics, and tighten legal frameworks to criminalise trade misinvoicing and money laundering.

The report also called for the establishment of public beneficial ownership registries to expose shell companies. Currently, only 15 African countries have implemented such registries, a gap described as a major obstacle in the fight against IFFs.

“With decisive action from tightening trade oversight to reclaiming stolen assets, African nations can significantly curtail illicit financial flows,” GFI stressed.

By: Franklin ASARE-DONKOH