ISSER Proposes New Model To Improve Sanitation Management

A new study by the Institute of Statistical, Social and Economic Research (ISSER) is advocating a hybrid waste management framework that blends decentralised local governance with large-scale private sector participation to drive efficiency, capital mobilisation and technological advancement in Ghana’s sanitation sector.

The report, titled “An Economic Analysis of the Benefits of Adequate Investment in Waste Management and Sanitation in Ghana,” argues that while empowering Metropolitan, Municipal and District Assemblies (MMDAs) remains vital, structural transformation of the sector will require financial depth and technical capacity beyond the reach of most local authorities.

Presenting the findings in Accra on Thursday, February 26, 2026, Lead Researcher and Economist at the University of Ghana, Professor Peter Quartey, emphasised that decentralisation ensures proximity, accountability and contextual understanding of waste challenges, but does not automatically guarantee the scale needed for infrastructure-heavy investments.

“Our assemblies are closest to the problem and understand the local dynamics of waste generation and collection. However, developing modern material recovery facilities, large composting plants or waste-to-energy installations requires significant capital and engineering expertise that most MMDAs do not possess. A strategic partnership approach is, therefore, essential,” Prof. Quartey said.

The study highlights a stark mismatch between sector needs and current expenditure. Ghana’s 261 MMDAs collectively spend about GHS 180 million annually on sanitation and waste management — a figure ISSER describes as grossly inadequate relative to both the scale of the sanitation deficit and the economic potential within the waste value chain.

According to the report, poor sanitation costs Ghana more than GHS 6.2 billion annually through healthcare expenses, productivity losses and environmental degradation. The researchers argue that incremental improvements within existing financial constraints will not deliver systemic reform.

To address this gap, the study proposes a two-tier financing model. Metropolitan areas, where population density and waste volumes create viable economies of scale, should leverage public-private partnerships (PPPs) to attract investment into high-capacity recycling plants, engineered landfills and waste-to-energy facilities. At the district level, however, public funding should prioritise collection systems, safe disposal infrastructure, drainage rehabilitation and the elimination of open dumping.

Data from the study show significant disparities among assemblies. Metropolitan areas such as Accra and Tema spend considerably more per capita on waste management than smaller municipalities. Yet many smaller districts face heightened vulnerability to sanitation-related diseases due to weak infrastructure, poor drainage and rapid peri-urban expansion.

Co-author Dr. Kwame Adjei-Mantey cautioned against one-size-fits-all solutions. “Large cities can attract private operators because they offer predictable revenue streams and economies of scale. Smaller districts require deliberate fiscal support. Without balance, investment will cluster in commercially attractive zones while high-burden communities remain underserved,” he noted.

The report identifies fast-growing municipal assemblies as critical intervention points, noting that they bear substantial waste-related costs, but lack the financial strength to independently fund advanced processing facilities.

ISSER also underscored the technical potential of Ghana’s municipal solid waste to generate up to 1,484 megawatts of electricity under an optimised waste-to-energy framework. However, Professor Ebo Turkson of the research team stressed that such projects demand industrial-scale financing and operational expertise.

“Waste-to-energy plants and advanced sorting facilities are capital-intensive undertakings,” he explained adding, “experienced private firms can deliver efficiency and innovation, provided there is regulatory clarity and bankable project design.”

The researchers cautioned that private sector participation must operate within strong regulatory and contractual safeguards to protect public interest and ensure environmental compliance.

The report further calls for strengthening MMDAs to become effective regulators and contract managers, with improved procurement systems, monitoring mechanisms and enforcement capacity. Additionally, it recommends integrating informal waste collectors into formal systems to enhance efficiency, improve occupational safety and stabilise incomes.

Ultimately, the study concludes that Ghana needs a coordinated national waste management strategy that clearly delineates roles between central government, MMDAs and private operators. Policy predictability, transparent tariff structures and enforceable environmental standards are identified as essential conditions for sustainable investment.

Prof. Quartey described the current moment as a strategic turning point. “Decentralisation remains critical, but it must be complemented by capital and technology from major private sector players. By aligning empowered local governance with credible private participation, Ghana can transform waste from a fiscal burden into a productive economic sector.”

He added that the proposed hybrid model represents not a compromise, but a necessary structural evolution to close financing gaps, improve public health outcomes and unlock long-term economic value within the sanitation ecosystem.

 

 

 

 

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