Civil Society Organisation (CSO) ActionAid Ghana has urged the government to take decisive action to curb illicit financial flows (IFFs) as part of a broader strategy to strengthen the economy and improve public services.
Speaking at the National Civil Society Dialogue and Mobilisation on Financing for Development (F4D) in Accra, John Nkaw, the Country Director of ActionAid Ghana, highlighted the critical impact of IFFs on the nation’s finances. He argued that addressing this challenge could significantly boost domestic resource mobilisation and reduce the country’s reliance on debt.
“The more our taxes are used to pay off debts, the fewer resources we have for essential social infrastructure like schools, hospitals, and clean water systems, especially in rural areas,” Nkaw noted.
He called for the introduction of more progressive tax policies that would place a higher burden on the wealthiest individuals and corporations, ensuring that the tax system is fair and equitable.
“Government needs to implement progressive taxation – a system where those who earn more, pay more – to generate the funds required for gender-responsive public services and critical social infrastructure,” he added.
Nkaw also stressed the need for stronger enforcement and transparency measures to combat IFFs, which he said have allowed billions of cedis to leave the country through tax evasion, trade misinvoicing, and profit shifting by multinational corporations.
“Without concrete mechanisms to address illicit financial flows, Ghana will continue to lose critical resources that could otherwise be invested in sectors like education, healthcare, and food security,” he warned.
ActionAid Ghana’s call comes at a time when the country is grappling with high debt levels and pressing demands for improved public services, making the effective management of domestic resources more crucial than ever.
