Ghana could generate up to GHS 47.9 billion in annual economic benefits by 2032 if it significantly scales up investment in waste management and sanitation, a new study by the Institute of Statistical, Social and Economic Research (ISSER) has revealed.

The report, titled “An Economic Analysis of the Benefits of Adequate Investment in Waste Management and Sanitation in Ghana,” argues that what is widely treated as refuse is, in economic terms, a high-value resource capable of transforming public health outcomes, boosting productivity, creating jobs and generating energy.

Presenting the findings at a launch in Accra, ISSER Director, Prof. Peter Quartey, said the study challenges the long-held perception of waste as merely an environmental nuisance.

According to him, strategic investment in modern waste processing systems, including recycling, composting and waste-to-energy infrastructure, could reposition the sector as a major contributor to national development rather than a persistent fiscal burden.

The study estimates that Ghana currently loses more than GHS 6.2 billion annually due to inadequate waste and sanitation systems. This includes GHS 5.58 billion in direct healthcare costs associated with sanitation-related diseases such as malaria, cholera and pneumonia, as well as approximately GHS 650 million in lost productivity.

Researchers attribute over 107,000 premature deaths each year to poor sanitation conditions, alongside nearly 31.9 million lost work and school days.

ISSER’s modelling contrasts this status quo with a “Best-Case Scenario” in which Ghana increases spending to approximately GHS 1,028 per tonne of waste managed — in line with the average for lower-middle-income countries.

Under this scenario, projected annual benefits of GHS 47.9 billion by 2032 would stem largely from reduced disease burden, lower healthcare costs and significant productivity gains. Additional value would be created through expanded recycling industries, compost production and energy recovery initiatives.

The report highlights the economic potential embedded in Ghana’s municipal solid waste stream.

Organic waste, including food scraps, market waste and agricultural residues, could be converted into compost to support domestic agriculture and reduce fertiliser imports. Recyclable materials such as plastics, metals and glass could supply raw materials for local manufacturing, supporting the development of a circular economy.

Citing earlier research, the study also notes that energy recovered from municipal waste could generate up to 1,484 megawatts of electricity, contributing meaningfully to national power supply while reducing environmental degradation associated with open dumping and burning.

ISSER researchers conducted interviews across seven metropolitan and municipal areas, documenting the role of informal waste collectors, tricycle operators and recyclers.

The report recognises these workers as critical actors in the waste value chain; they often operate without formal protection, safety equipment, or social security coverage. It recommends structured integration of informal operators into a formalised waste economy to improve efficiency, safety and income stability.

Prof. Yaa Adobea Owusu, who led the qualitative component of the study, said policy reforms must incorporate these workers if Ghana is to fully realise the sector’s economic potential.

Despite the projected gains, the study notes that all 261 Metropolitan, Municipal and District Assemblies collectively spend only about GHS 180 million annually on waste and sanitation.

Under the current spending model, estimated at GHS 38.78 per tonne, each cedi invested yields about GHS 180 in returns. However, under the higher-investment scenario, each cedi could generate returns of up to GHS 556.

The researchers argue that the gap between current expenditure and potential returns underscores the need for urgent policy recalibration, improved financing mechanisms and stronger public-private partnerships.

The study recommends targeted capital investments in high-risk urban and peri-urban areas, expansion of sanitation infrastructure, incentives for private sector participation and structured support for informal waste workers.

It concludes that Ghana stands at a critical juncture: maintaining current investment levels will perpetuate economic losses, while decisive reform could convert the waste sector into a multi-billion-cedi engine of growth.

“The economic case is clear,” Prof. Quartey stated. “With the right policy choices and sustained investment, waste can shift from being a liability to becoming a strategic national asset.”