Nutrition as an economic investment, not a welfare cost — and how Ghana can unlock the returns of better nutrition for all.
The Hidden Cost of Malnutrition
In Ghana, the true cost of malnutrition is often invisible, yet it touches every sector of the economy. Children who are stunted in their early years struggle in school. Adults who grew up undernourished earn less. Families spend more on healthcare, and national productivity quietly declines.
As Professor Richmond Aryeetey explained in his GAAS inaugural lecture, malnutrition is not only a health issue, it is an economic constraint. Ghana loses an estimated 6% of GDP each year to the combined effects of poor nutrition — through lost productivity, reduced learning capacity, and premature deaths.
“When we speak of growth,” he said, “we must also speak of nourishment. A nation that fails to feed its people well cannot sustain its prosperity.”
From Cost to Investment
For decades, nutrition spending has been framed as social expenditure; like something to do “when the economy allows.” But global evidence tells a different story. According to the Copenhagen Consensus, investing in nutrition yields returns of up to 36 times the cost. This is among the highest for any development intervention.
Countries that increased nutrition budgets early, like Ethiopia and Bangladesh, saw sharp declines in stunting and improved national productivity. Their approach was simple: treat nutrition as essential infrastructure such as essential as roads, energy, or education.
“Nutrition is development’s multiplier,” Aryeetey emphasized. “When people eat well, they learn better, work better, and live longer. That is the foundation of economic growth.”
Following the Money: Ghana’s Nutrition Financing Gap
In Ghana, nutrition is mentioned in dozens of policies; from agriculture and health to education and social protection. Yet the financial commitment remains modest and fragmented. Most nutrition activities are donor-driven, with limited predictable funding from the national budget.
The National Development Planning Commission (NDPC) once estimated that only a small fraction of Ghana’s public spending directly targets nutrition outcomes — far below what is needed to meet Sustainable Development Goal (SDG) 2 on zero hunger.
Aryeetey warned that this dependency on external financing weakens accountability: “When donor funding fades, so does our momentum. National nutrition goals need national ownership.”
Financing What Matters Most
So what should Ghana invest in?
The priority, Aryeetey argued, is early-life nutrition especially for women and children in the first 1,000 days.
He called for expanded investments in:
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Maternal nutrition programs during pregnancy,
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School feeding linked to local food producers,
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Food fortification and dietary diversity initiatives, and
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Nutrition-sensitive agriculture that makes healthy foods affordable.
These are not charity programs. They are economic accelerators that build human capital.
“Every cedi invested in a child’s nutrition today,” Aryeetey noted, “is an investment in Ghana’s human potential tomorrow.”
A Call for Smarter Financing
Aryeetey proposed three key shifts to make nutrition financing more sustainable and effective:
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Mainstream Nutrition into National Budgets
Nutrition should not depend on special projects. Ministries from Health to Agriculture must embed nutrition targets and budgets in their core programs. -
Leverage Private Sector Partnerships
Food producers, processors, and retailers can drive innovation in fortification, labelling, and local sourcing. Tax incentives and public–private partnerships can amplify impact. -
Track and Report Spending Transparently
Accountability begins with data. Ghana needs a nutrition expenditure tracking system to show where money goes and where it makes the most difference.
“Without visibility,” Aryeetey said, “financing becomes political theatre. With transparency, it becomes policy.”
The Economics of Prevention
Globally, preventing malnutrition costs far less than treating its consequences.
A 2021 World Bank analysis showed that achieving universal coverage of proven nutrition interventions would cost about $10 per child per year in low- and middle-income countries far less than the losses caused by poor diets.
Ghana spends billions on curative health care each year, but only a fraction on preventive nutrition.
Aryeetey described this imbalance as “an economic paradox” — one where we pay more to fix the outcomes of malnutrition than to prevent them.
“The cheapest health policy,” he said, “is a nutritious diet.”
Learning from Global Success Stories
Countries that transformed their nutrition outcomes didn’t wait for prosperity — they invested their way into it.
In Peru, coordinated nutrition investments helped cut child stunting by half in a decade.
Rwanda linked nutrition to its national development strategy, ensuring every ministry had measurable nutrition indicators.
Their lesson for Ghana: leadership and financing go hand in hand.
When national budgets reflect national priorities, change follows.
Beyond Money: The Power of Political Will
Financing nutrition is not only about mobilizing resources. It is also about mobilizing commitment.
Budget lines follow leadership. When presidents, parliamentarians, and finance ministers see nutrition as an economic imperative, not a social add-on, systems shift.
As Aryeetey reminded policymakers:
“Governments always find money for what they value most. The question is — do we value nutrition enough to fund it?”
A Smart Investment for Ghana’s Future
Investing in nutrition is investing in people — in children who can learn, farmers who can thrive, and workers who can contribute productively to national growth.
The evidence is clear: nutrition drives economic development, not the other way around.
As Ghana pursues its 2050 development ambitions, Aryeetey’s challenge remains timely:
“Nutrition must move from the margins of our budgets to the centre of our economic strategy. It is not a cost — it is capital.”
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End of series
This series was based on Prof. Richmond Aryeetey’s inaugural lecture at GAAS
