ACCRA — The health consequences of tobacco use in Ghana have long been public knowledge. But new findings reported by the Accra Street Journal reveal a deeper, less visible cost: a significant financial drain on the national economy, with annual losses now estimated at nearly GH₵700 million.
According to Dr. Alex Moyem Kombat, Assistant Commissioner for Research and Policy at the Ghana Revenue Authority (GRA), tobacco use costs the country approximately GH₵668 million each year—a figure that represents 0.2% of Ghana’s Gross Domestic Product (GDP).
In a report titled “Implementation of Health Taxes in Ghana”, Dr. Kombat breaks down the figure:
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GH₵172 million is absorbed by direct health-care expenditures,
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while GH₵496 million is lost through reduced productivity due to illness, disability, and premature death tied to tobacco consumption.
“These are real costs,” said Dr. Kombat. “This is money that could otherwise be spent on infrastructure—hospital beds, school desks, or roads. Instead, it’s quite literally going up in smoke.”
A Broader Economic Threat
The fiscal damage from tobacco is just one piece of a broader health-related economic crisis. Ghana also loses GH₵420 million annually to poor sanitation, according to estimates by UNICEF, which translates to US$12 per person per year, or 1.6% of national GDP.
The Accra Street Journal notes that behind these statistics lies a complex cultural driver: the booming number of social events—from funerals and weddings to festivals and naming ceremonies—where consumption of alcohol, tobacco, and sugary beverages is on the rise.
“These gatherings have become breeding grounds for unhealthy consumption patterns,” said Dr. Kombat. “What were once celebrations of life are increasingly contributing to long-term health issues and economic loss.”
Government Action – and Its Limits
To combat the growing burden, the Ghanaian government has introduced health taxes, including recent amendments to the Excise Duty Act, targeting tobacco, alcohol, sugary drinks, and plastics. But Dr. Kombat warns that taxes alone are not enough.
He is calling for a more aggressive enforcement strategy, alongside behavioral change campaigns and public education initiatives to drive down demand for harmful products.
“Unless we shift the culture and improve enforcement, these health taxes will barely scratch the surface of the economic damage,” he stated.
A Silent Drain on National Resources
With nearly ₵700 million in economic output lost annually, the cost of tobacco in Ghana can no longer be seen as a health issue alone. As Dr. Kombat emphasized, “Every cigarette smoked at a funeral or bottle passed at a party is not only harming organs—it’s weakening the fiscal foundation of the country.”
Last Updated on May 26, 2025 by
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
