Ghana loses $4.55 billion every year to road crashes – World Bank

Ghana is estimated to lose a staggering $4.55 billion every year as a result of road crashes, according to a new report by the World Bank.

The amount represents approximately 2.1% of Ghana’s Gross Domestic Product (GDP), highlighting the enormous economic impact of road accidents on the country.

The revelation was contained in the World Bank’s 10th Ghana Economic Update, titled “Reset for Growth: Sustaining Macroeconomic Recovery and Unlocking Transport for Transformation.”

The Bank is urging Ghana to treat road safety as more than just a public health concern, warning that the financial consequences of crashes have become a major economic and fiscal challenge.

According to the report, the estimated $4.55 billion annual loss includes reduced productivity caused by deaths and disabilities, medical and rehabilitation expenses, damage to property, administrative costs, as well as the emotional and social impact suffered by victims and their families.

The World Bank noted that the cost of road crashes outweighs spending in some critical sectors. The amount lost annually is said to be nearly twice the actual budget of the Ministry of Health and more than two-thirds of government expenditure on education.

The scale of Ghana’s road safety crisis is also reflected in the number of deaths recorded across the country.

In 2021 alone, Ghana recorded 8,494 road fatalities, representing a death rate of 25.9 people per 100,000 population — one of the highest rates in Sub-Saharan Africa, according to the World Bank.

Although the country has recorded some progress, with fatalities and serious injuries declining by 13.7% between 2021 and 2024, the Bank warned against celebrating too soon.

It explained that the reduction came from an extremely high baseline and does not mean Ghana’s road safety challenges have been resolved.

One of the biggest concerns raised in the report is the growing number of motorcycle and tricycle users involved in fatal crashes.

Their share of road deaths has increased dramatically, rising from just 2.7% in 2001 to 34% in 2021.

The World Bank said this development is particularly worrying because many motorcycle and tricycle riders work in Ghana’s growing informal transport and logistics industry, where they transport passengers and deliver goods.

The report also identified a worrying concentration of crashes on a relatively small number of roads.

According to the World Bank, just 2.65% of urban roads and 4.37% of rural roads account for a disproportionately large number of accidents.

The situation on major rural roads is said to be getting worse.

The Bank believes this presents Ghana with an opportunity to focus resources on known accident hotspots instead of spreading interventions across the entire road network.

Among the measures recommended are improved road markings, redesigned intersections, additional pedestrian crossings, better lighting on dangerous roads, stricter fleet safety regulations and stronger enforcement powers for the National Road Safety Authority.

Beyond road crashes, the World Bank also raised concerns about Ghana’s wider transport challenges, including deteriorating roads, weak coordination among institutions, severe traffic congestion and the poor performance of the railway sector.

Traffic congestion alone is estimated to cost Ghana about GH¢4.5 billion annually, equivalent to roughly 1% of the country’s 2021 GDP.

The report comes as the government moves forward with its Big Push Infrastructure Programme, which has allocated $2.2 billion towards infrastructure development in the 2026 budget.

The World Bank said the investment provides Ghana with a major opportunity to address long-standing transport challenges.

However, it stressed that building more infrastructure alone will not solve the problem unless the projects are supported by stronger maintenance systems, better governance, improved safety standards and effective planning across road, rail and other transport networks.