New study reveals substantial and persistent IFF vulnerabilities across the capture, processing, and export phases of the value chain.
Ghana’s fisheries sector is a cornerstone of the national economy and food security, contributing approximately 1.01% to GDP in 2023 and supporting the livelihoods of an estimated 10% of the population. However, the sector is in crisis. Fish stocks, particularly small pelagic species that sustain artisanal fishing communities, have declined by more than 80% over the past two decades. This decline is driven by overfishing, illegal, unreported, and unregulated (IUU) fishing, weak enforcement, corruption, and the persistent “saiko” transshipment trade, which enables industrial trawlers to illegally target the catch of small-scale fishers.
A new study prepared for Global Financial Integrity (GFI) by the Integrated Social Development Centre (ISODEC) examines the risks of Illicit Financial Flows (IFFs) along Ghana’s fisheries value chain and their implications for domestic revenue mobilization. Through a mixed-methods approach combining secondary data analysis from FAO statistics, World Bank reports, Environmental Justice Foundation investigations, and value chain studies, the research reveals substantial and persistent IFF vulnerabilities across the capture, processing, and export phases of the value chain.
In the capture phase, IUU fishing represents the most significant IFF channel. Investigations found that over 90% of crew witnessed the dumping of fish, over 80% observed illegal fishing in the Inshore Exclusion Zone, and over half observed deliberate manipulation of mesh sizes. The “saiko” trade persists despite bans, with fish now boxed and sold openly at Tema port, evading port controls and revenue collection. License fee under-collection costs Ghana an estimated US$6.4 million annually, compared to regional comparators such as Sierra Leone.
In the processing phase, the saiko trade is valued at US$14.4–38.3 million annually in unreported economic activity, and human rights abuses on industrial trawlers, affecting 75–100% of Ghanaian crew, reduce operational costs while sustaining illegal operations. In the export phase, approximately 90% of the industrial trawl fleet is beneficially owned by foreign interests through Ghanaian front companies, enabling the leakage of export revenues.
The conservative combined estimate of IFF-related revenue losses is between US$39.2 million and US$72.4 million annually. This includes licence fee under-collection, IUU fishing revenue loss, saiko trade foregone tax, and cost-recovery deficit on fines.
Critical gaps include weak enforcement, with out-of-court settlements reducing penalties; pervasive corruption, with most crew witnessing officials being bribed; opaque beneficial ownership; inadequate monitoring, control, and surveillance capacity; and political interference in enforcement. Despite Ghana scoring highly on implementing international fisheries instruments, the gap between policy and practice is substantial.
Based on the findings, the study proposes fifteen policy recommendations across seven thematic areas: strengthening legal frameworks, including full implementation of the Fisheries and Aquaculture Act, 2025 (Act 1146) and mandatory beneficial ownership disclosure with a public registry; enhancing monitoring, control and surveillance; combating corruption through a dedicated Fisheries Anti-Corruption Unit; reforming the premix fuel subsidy; strengthening transparency through the Fisheries Transparency Initiative; deepening regional cooperation with the Fisheries Committee for the West Central Gulf of Guinea, the West Africa Task Force, INTERPOL and MAOC (N); and enhancing domestic revenue mobilization by reviewing and harmonising fisheries taxation and strengthening the Catch Documentation Scheme.
Addressing IFFs in the fisheries sector requires a comprehensive approach that combines legal reforms, enhanced enforcement, anti-corruption measures, transparency initiatives, and regional cooperation. Success will depend on sustained political will, community participation, and continued investment in science, infrastructure, and innovation.