Ghana Needs Underground Drainage System To Boost Its Tourism Industry

Ghana Gas Station Explosion

A car lies in a water trench that washed away after heavy rain near a gas station explosion in Accra, Ghana, Thursday, June 4, 2015. Flooding in Ghana’s capital swept stored fuel into a nearby fire, setting off a huge explosion at a gas station that killed scores of people and set alight neighboring buildings, authorities said Thursday. (AP Photo/Christian Thompson)

If the Ghanaian government really wants the country to be one of the best tourists destination countries in the world, then the country should consider embarking on building an underground drainage system, because the much-opened sewage in the country produce horrific odours which prevent tourists from visiting the country.

Almost six decades after Ghana attained independence, developments in the country are very slow and the drainage systems are poor giving rise to malaria and other diseases.

Anyone that visits Ghana has a wonderful story to tell about the friendly people and delicious meals, but the stench that emanates from opened gutters changes the taste of the story to bitterness.

Normally such ugly scenes shouldn’t be something to be seen in the city, but opened sewage are everywhere throughout the city of Accra. Just going round the famous Makola market will put you off to visit Ghana again as a tourist.

It’s very sad that for ages the Ghana government depends on the exportation of raw materials such as farm products and minerals to support the economy. But the revenues from Ghana’s import is not helping the country very much.

Firstly, unseen corruption is daily eating into Ghana’s coffers and the price of commodities given by foreign trade partners is very poor. Without any means to generate effective taxation, the Ghana Ports Authority taxation on commodities brought into the country from foreign countries is higher than the purchased price.

This is completely insane but since there are no means to generate tax apart from exports, the Ghanaian government continues to ignore the ‘Cry of the sufferers’ at the ports to tax foreign goods such as vehicles over two hundred percent high. Many are asking if it worth to bring a vehicle from overseas into the country.

Proper sanitation facilities and underground drainage system will not only increase Ghana’s revenue in tourism but also reduce the high rate of malaria infection.

Yet there are many African countries, including Ivory Coast, making great revenue from tourism because of its well-planned waste disposal and drainage systems. The city of Abidjan can be compared to a city in Europe, because of its underground drainage system. Ghana could have been a great tourist center but poor sanitation and drainage facilities prevent thousands of tourist yearly to visit the country.

On many occasions during heavy floods, people are carried away, but constructing underground drainage to save the lives of people or to increase revenue in tourism industry hasn’t been an issue of concern to the Ghanaian government, yet the government is among other five African head of States, a case study in Europe has discovered are in corruption deal involving trade mis-invoicing, costing Ghana billions of dollars in lost revenue. The link: https://goo.gl/EAHNKc .

Ghana, Kenya, Mozambique, Tanzania, and Uganda Governments Engaged In Massive Corruption Costing Africa Billions Of Revenue Loss

UGANDA 2

Top row: From left John Dramani Mahama of Ghana, Uhuru Kenyatta of Kenya and Armado Guebuzza of Mozambique. Underneath: President Takaya Kikwete of Tanzania and Yoweri Museveni of Uganda.

Hiding In Plain Sight: Trade Misinvoicing And The Impact Of Revenue Loss In Ghana, Kenya, Mozambique, Tanzania, and Uganda: 2002-2011

By Christine Clough, Dev Kar, Brian LeBlanc, Raymond Baker, Joshua Simmons,

A case study on the impact of trade misinvoicing in Ghana, Kenya, Mozambique, Tanzania, and Uganda—titled “Hiding in Plain Sight: Trade Misinvoicing and the Impact of Revenue Loss in Ghana, Kenya, Mozambique, Tanzania, and Uganda: 2002-2011”—found that the fraudulent over- and under-invoicing of trade is hampering economic growth and costing these developing governments billions of U.S. dollars in lost revenue.

Primary Findings

Between 2002 and 2011, US$60.8 billion moved illegally into or out of Ghana, Kenya, Mozambique, Tanzania, and Uganda using trade misinvoicing: Gross Illicit Flows from Ghana, Kenya, Mozambique, Tanzania, and Uganda, 2002-2011, millions of USD | No data from Mozambique and Kenya for 2011.

The report is only the second by GFI to use our new methodology to estimate tax revenue loss from trade misinvoicing.  The study finds that the potential average annual tax loss from trade misinvoicing amounted to roughly 12.7% of Uganda’s total government revenue over the years 2002-2011, followed by Ghana (11.0%), Mozambique (10.4%), Kenya (8.3%), and Tanzania (7.4%

Methodology

GFI Chief Economist Dev Kar and GFI Junior Economist Brian LeBlanc developed robust economic models that highlight the drivers and dynamics of illicit flows in both directions for each of the five countries analyzed. Nevertheless, GFI cautioned that their methodology is very conservative and that there are likely to be more illicit flows into and out of these countries that are not captured by the models. GFI notes that—due to data issues, varying customs rates by commodity and sector, and various other factors—it is difficult to assess the true tax revenue loss stemming from trade misinvoicing in a particular country. The tax loss figures presented in this study are rough estimates of the possible impact that trade misinvoicing could have on government revenues in Ghana, Kenya, Mozambique, Tanzania, and Uganda.

Country-Specific Findings

Ghana Kenya Mozambique Tanzania Uganda
Ghana Kenya Mozambique Tanzania Uganda
Cumulative Trade Misinvoicing Outflows US$7.32bn US$9.64bn US$2.33bn US$8.28bn US$8.39bn
Cumulative Trade Misinvoicing Inflows US$7.07bn US$3.94bn US$2.93bn US$10.44bn US$457mn
Gross Cumulative Trade Misinvoicing Inflows + Outflows US$14.39bn US$13.58bn US$5.27bn US$18.73bn US$8.84bn
Gross Annual Trade Misinvoicing as % of GDP 6.64% 7.76% 8.98% 9.36% 7.05%
Gross Annual Trade Misinvoicing as % of ODA 189.17% 288.63% 49.51% 131.21% 97.94%
Cumulative Outflows via Export Under-Invoicing US$5.1bn US$9.26bn US$1.26bn 0 US$261mn
Cumulative Outflows via Import Over-Invoicing US$2.21bn US$377mn US$1.08bn US$8.28bn US$8.13bn
Primary Method for Shifting Money Illicitly out of Country Export Under-Invoicing Export Under-Invoicing Both Export Under-Invoicing & Import Over-Invoicing Import Over-Invoicing Import Over-Invoicing
Cumulative Inflows via Import Under-Invoicing US$4.6bn US$3.94bn US$2.22bn US$108mn 0
Cumulative Inflows via Export Over-Invoicing US$2.43bn 0 US$711mn US$10.34bn US$457mn
Primary Method for Shifting Money Illicitly into Country Import Under-Invoicing Import Under-Invoicing Import Under-Invoicing Export Over-Invoicing Export Over-Invoicing
Cumulative Tax Revenue Loss via Trade Misinvoicing ^1 US$3.86bn US$3.92bn US$1.68bn US$2.48bn US$2.43bn
Average Annual Tax Revenue Loss via Trade Misinvoicing ^1 US$386mn US$435mn US$187mn US$248mn US$243mn
Tax Revenue Loss via Trade Misinvoicing as % of Total Government Revenue ^1 11.0% 8.3% 10.4% 7.4% 12.7%

FOOTNOTES

  1. GFI notes that—due to data issues, varying customs rates by commodity and sector, and various other factors—it is difficult to assess the true tax revenue loss stemming from trade misinvoicing in a particular country.  The tax loss figures presented in this study are rough estimates of the possible impact that trade misinvoicing could have on government revenues in Ghana, Kenya, Mozambique, Tanzania, and Uganda.
  2. All monetary values are expressed in U.S. dollars (USD).

Some of the graphs didn’t appear at this website, thus; beneath is the link to the original article: http://www.gfintegrity.org/report/report-trade-misinvoicing-in-ghana-kenya-mozambique-tanzania-and-uganda/