A report by Professor Léonce Ndikuma from the University of Massachusetts Amherst reveals that Ghana suffered a massive $50 billion loss over the past five decades due to capital flight.
This research focused on several African countries rich in natural resources, including Ghana, Cameroon, and Zambia.
The $50 billion loss primarily stems from companies in the gold mining and cocoa industries misreporting trade values.
In the case of gold, Ghana’s reported export values didn’t match the actual value received by the destination country, exemplified by a $15 billion discrepancy in 2020-2021 when exporting gold to South Africa.
Concerning cocoa, losses were relatively low due to the government’s significant involvement in the trade. Nonetheless, Ghana only controls 4% of the cocoa value chain, while the processing and distribution sector holds a substantial 79%.
The report also revealed a combined private wealth of approximately $56 billion, with 110 wealthy Ghanaians possessing over $10 million each. As a solution, the report recommended that Ghanaian business owners invest in developing these sectors’ value chains.
Overall, the report sheds light on a staggering total capital flight of $2 trillion from Africa between 1971 and 2018. The report, titled “Capital Flight from Africa and Perverse Global Connections: Analysis and Possible Solutions,” underscores the need for action on this critical issue.