ACTIONAID GHANA URGES GOVERNMENT TO IMPLEMENT REFORMS TO CURB ILLICIT FINANCIAL FLOWS

ActionAid Ghana is calling on the government to introduce comprehensive policy reforms aimed at curbing illicit financial flows (IFFs), which result in the country losing billions of cedis each year through tax evasion, trade misinvoicing, and illegal capital flight. These losses severely undermine Ghana’s ability to invest in essential public services such as education, healthcare, and infrastructure—areas critical to improving the lives of women, children, and marginalized communities.

At the National Civil Society Dialogue on Financing for Development held on May 14, 2025, ActionAid Ghana’s Country Director, John Nkaw, emphasized the need for fair and inclusive tax systems. He advocated for progressive reforms that ensure the wealthy and multinational corporations pay their fair share, while shielding low-income earners from excessive tax burdens. Nkaw also stressed the importance of recovering stolen wealth to reinvest in national development.

The event, which brought together several civil society organizations including Oxfam, Amnesty International, and the Tax Justice Coalition, called for urgent measures including:

• The implementation of gender-responsive and climate-aware tax reforms.
• Stronger policies and enforcement to prevent illicit financial flows and corporate tax avoidance.
• Greater public investment in education, health, and social protection.
• Sustainable funding mechanisms for civil society to ensure independent and effective advocacy.

Bernard Anaba of the Integrated Social Development Centre (ISODEC) added that the twin challenges of rising public debt and unchecked IFFs are weakening the government’s ability to finance development. He called for stricter taxation on capital gains, gifts, and high-income individuals, as well as international cooperation to establish a more equitable global financial system.

ActionAid Ghana’s appeal highlights the urgent need for structural reforms to stop financial leakages and ensure a fairer and more sustainable development path for the country.