Inequality Report: Ghana ranked 29th in Africa

Ghana has been ranked twenty ninth (29th) out of 41 countries in Africa under the Committed to Reducing Inequality (CRI) Index Report.

The report conducted by OXFAM, ranked Ghana as one of the least in investments, healthcare and social protection.

In social protection, Ghana ranked 12th on social spending, after countries including Cape Verde, Cote d’Ivoire, Burkina Faso, Mali, Niger and Mauritania.

The Commitment to Reducing Inequality (CRI) index reports shows that Ghana is among the worst countries in the sub region owing to among other things, the unwillingness by government to invest more funds in healthcare, education and social protection for the most vulnerable in the country.

According to a Lecturer at the University of Ghana Business School Professor, Godfred Bokpin, inequality is on the rise and its only benefiting a very few people while a number of people are growing fantastically rich in Africa.

He further noted that inequalities occur as a result of rigged economic systems, which enables a small minority to accumulate huge fortunes through political capture, monopoly, cronyism and inheritance.

“The rising inequality is a threat to social cohesion, it’s a threat to our democracy… inequality is at the crisis level in Africa”, he said.

The CRI index reports shows Ghana ranked top in the Progressive Taxation along countries such as Togo and Benin in West Africa. Which means that these countries’ tax policies are comparatively progressive than other West African Countries.

The inequality report also provided recommendations to government to which when harnessed will reduce the gap between the rich and poor as well as inequality.

Among them were the fact that;

Progressive taxation must be structured that is, pay special attention to increasing tax compliance by high net worth individuals and seek to tax wealth that is hidden offshore and strengthen protection for labour rights and enact policies for more inclusive labour markets.

Prof Bokpin also said that in order to eradicate inequality, government must spend more on health, education and social protection.

He, however, called on government to be proactive and to have a direct intervention to ensure that growth actually benefits the poor.