The Economy of Mourning in Ghana

Death is a taboo in Western countries, but in Ghana, it’s a vibrant, significant business. Rekh Magazine speaks to Kofi Ayisi Aboagye, a chartered accountant and business advisor, about the cultural and economic power of Ghanaian funerals

Eric Adjetey Anang and the Kane Kwei Carpentry Workshop with a variety of fantasy coffin designs, including a chicken, crab and airliner (Photo from Wikipedia)

By Primavera Fisogni

It's no secret that death is a taboo subject in Western countries. For this reason, readers of Rekh Magazine may be surprised by the tradition in Ghana, where the death of a loved one is associated with affection, culture and a significant business sector. This aspect in particular deserves to be understood and explored. In this interview, Rekh Magazine speaks to Kofi Ayisi Aboagye, a chartered accountant, internal audit leader and business advisor with over twelve years' experience in development finance, SME growth strategy and corporate governance. He is the author of the recent article "Funerals and the hidden economy: How Akan pride fuels commerce" (https://citinewsroom.com/2025/09/funerals-and-the-hidden-economy-how-akan-pride-fuels-commerce-kofi-ayisi-aboagye-writes/)

R. M. What is the main role of funerals in Ghana, beyond being a time of sorrow? I ask you to focus on the cultural and economic role of funerals.

In Ghana, funerals go far beyond mourning – they are sacred celebrations of life, legacy, and belonging. Within Akan society, especially among the Asante, a funeral is both a spiritual and social event. It is a final honour to the departed and a public statement of the family’s dignity, lineage, and social standing. The size, organisation, and attendance of a funeral often mirror the status and influence of the deceased and their family. A large, well-attended funeral signifies not only respect for the departed but also the family’s social and economic strength.

Culturally, funerals serve as gatherings of identity and continuity. They unite extended families, clans, and communities, reinforcing kinship bonds and shared heritage. They are also expressions of gratitude – celebrating the life lived, rather than focusing solely on loss. In this sense, funerals are sacred because they bridge the world of the living and the ancestors, keeping the cultural fabric of society intact.

Economically, funerals form one of the most dynamic informal industries in Ghana. Each ceremony activates a wide value chain: fabric dealers, tailors, caterers, transport operators, photographers, event planners, and even mobile money agents. Studies show that an average mid-level funeral can cost between GHS 50,000 and GHS 200,000, circulating income through local businesses and creating temporary employment for hundreds. In my view, I believe the figures indicated are on the low side, and can be even more for a modern standard funeral. Among the Akan, pride and respect drive this economy. A “befitting funeral” is a duty, not a luxury – and while it can strain family finances, it also sustains livelihoods, from seamstresses and food vendors to decorators and sound engineers. In this way, funerals in Ghana embody both culture and commerce – sacred moments of remembrance that, at the same time, sustain a vibrant ecosystem of work and creativity.

According to your article, why do Akan families spend such large amounts of money on funerals?

Among the Akan, and especially within Asante culture, funerals are sacred obligations – not simply social events. They embody respect, continuity, and pride. To the Akan mind, a “befitting funeral” is an act of honour: it upholds the dignity of the deceased and affirms the family’s place in society. The grandeur of the funeral, the turnout, the attire, the organisation – reflects both the social standing of the departed and the family’s reverence for heritage.

This pride in preserving culture runs deep. I remember a conversation with my father, himself a traditional ruler (Chief), who once told me clearly the kind of funeral he expect when his time comes. It wasn’t vanity; it was about dignity and ensuring that his departure would celebrate his service to the people and his role as a custodian of tradition. Among the Asante, that is the mindset: funerals are not just about the dead; they are about the living fulfilling their sacred duty.

So when Akan families spend large sums – sometimes borrowing or selling property – it is less about extravagance and more about fulfilling a moral and cultural responsibility. The ceremony becomes a statement of legacy, unity, and gratitude. In doing so, it also drives economic activity, sustaining artisans, vendors, and service providers across communities.

How much, on average, did a "standard" household funeral cost in Ghana?

I have earlier indicated that some studies estimate the average cost of a “standard” funeral in Ghana between GHS 50,000 and GHS 200,000, roughly € 4,200 to € 16,700. These figures capture the direct costs – clothing, catering, decorations, transport, photography, and mortuary services – but they underestimate the indirect spending and economic activity that accompany such events. From my personal experience, these numbers now appear moderate. With inflation and rising costs of goods and services, funerals have become far more expensive, especially among the Akan, and particularly the Asante. As indicated, among Asantes, a “befitting” funeral, one that reflects dignity and respect, can easily cost GHS 150,000 or about €12,500 today. To put this in context, Ghana’s average monthly household income is around GHS 3,000 (€250), meaning a single funeral can cost the equivalent of several years’ earnings. Yet, families, sometimes, have no choice but to commit to it. Even if they have to be pooling resources from relatives, diaspora remittances, church groups, or loans. This is because, in Akan culture, a funeral is not merely a social event; it is a sacred duty that affirms lineage, respect, and pride.

First, funeral attire is a major expense. It is customary for mourners to wear specific colours – black, red, or sometimes kente – which often must be newly purchased or tailored to match the family’s chosen design. During peak funeral seasons, sales of these fabrics surge, benefiting local textile merchants and seamstresses, as well as courier companies...

Besides the bereaved family, what are three types of costs that funeral attendees are mentioned as spending money on?

Our funerals create a ripple of spending that extends well beyond the bereaved family. Attendees also bear significant costs, often out of respect and social obligation.

First, funeral attire is a major expense. It is customary for mourners to wear specific colours – black, red, or sometimes kente – which often must be newly purchased or tailored to match the family’s chosen design. During peak funeral seasons, sales of these fabrics surge, benefiting local textile merchants and seamstresses, as well as courier companies.

Second, transport and accommodation form another layer of cost. Many mourners travel long distances, sometimes by air, to attend the ceremonies in the deceased’s hometown. For those coming from other regions or from abroad, hotel lodging and meals can be significant, especially during large funerals that draw national or international guests.

Finally, there is the funeral donation, locally known as nsawa. This is a cash contribution made to the family of the deceased, both as a gesture of support and a public show of solidarity. For many attendees, this donation is non-negotiable – it reinforces social bonds and helps the family offset part of their funeral costs.

Altogether, these personal expenses illustrate how deeply funerals engage the wider economy, turning each ceremony into a shared financial and cultural event.

What is the concept of "redistribution" in the funeral economy, as highlighted by the Dei (2021) study? Precisely, how does money move through the community?

The concept of “redistribution” in the funeral economy, as explained in Dei’s (2021) study, refers to how money circulates through the community during funeral events – flowing from grieving families into the hands of countless local workers, traders, and service providers. It is an informal yet powerful system of economic exchange where cultural duty and commerce intersect.

On the funding side, most funerals are financed informally. Family members, especially the children of the deceased, contribute funds; close relatives and friends provide support in cash or kind. It’s common for families to pool resources through remittances from the diaspora – a reflection of both obligation and pride. At the formal level, due to the heavy financial burden, some households turn to funeral insurance products or savings schemes. Increasingly, insurers are designing packages for Ghanaian families living abroad to ease the cost of repatriation and burial expenses.

On the distribution side, the flow of money touches nearly every segment of the local economy. Caterers, fabric vendors, decorators, transport operators, photographers, mortuary attendants, beverage suppliers, and street food vendors all benefit. Even hospitals, printing presses, and mobile money agents record increased activity during funeral periods. It becomes an ecosystem of livelihoods – an “army” of small enterprises and individuals whose daily income depends on these cultural events.

In this way, the funeral economy acts as a redistributive mechanism: while one family spends in sorrow, hundreds of others earn a living. It’s a cycle that sustains both culture and community, blending heritage with economic resilience.

Studies show that an average mid-level funeral can cost between GHS 50,000 and GHS 200,000, circulating income through local businesses and creating temporary employment for hundreds. In my view, I believe the figures indicated are on the low side, and can be even more for a modern standard funeral. Among the Akan, pride and respect drive this economy

What are three ways money flows into the funeral economy?

Money flows into the funeral economy through a mix of informal, semi-formal, and formal channels – each deeply rooted in Ghana’s social fabric. The first and most common source is informal family and friends’ contributions. In Akan culture, funerals are collective responsibilities. Immediate family members, particularly the children of the deceased, take the lead in financing the event. Relatives, friends, and community members also contribute cash, food, or logistics support. This network has become so established that some individuals have formed small social groups or “welfare societies,” which act as informal insurance systems – members contribute to one another’s funerals when the need arises.

For those in the diaspora, it is customary to host a pre-funeral gathering in their resident country to honour the deceased and raise funds through contributions from friends and acquaintances before travelling home for the main funeral. These events not only raise money but also help maintain the emotional and cultural connection with home.

The second source is through formal financial channels, such as funeral insurance and personal savings. Insurance companies in Ghana now offer funeral policies that pay claims to help families cover funeral costs. Some of these products are designed specifically for diaspora Ghanaians, recognizing the high cost of repatriation and the cultural importance of a proper burial at home. Others rely on accumulated savings or take personal loans when the financial burden exceeds what family contributions can provide.

Finally, during the funeral itself, families receive cash donations known as “nsawa.” Guests and mourners give these contributions as gestures of sympathy and solidarity. For many families, nsawa serves as a partial recovery mechanism – helping to offset some of the costs incurred. Wealthier or more prominent families sometimes even recover their entire expenditure or make a small surplus, depending on their social standing and the scale of attendance.

In all these ways, funerals in Ghana represent a vast financial cycle: funds flow in from kinship networks, social groups, insurance, and remittances – and then flow out again to sustain the many artisans, traders, and service providers who form the backbone of the funeral economy.

The text describes the Asantehemaa's funeral as being like a "small economy at work." What simple lesson does the text suggest this reveals about tradition and business?

The Asantehemaa holds immense cultural and spiritual significance in Asante society. As the Queen Mother of the Ashanti Kingdom and the maternal figure of Asanteman, she embodies wisdom, dignity, and continuity. Her funeral is therefore far more than a family affair – it is a national moment of reflection and reverence. Ceremonies of such stature, especially those involving royalty, unfold over several days, resembling grand cultural festivals. The recent Asantehemaa’s funeral transformed Kumasi into a hive of activity, drawing mourners, dignitaries, and visitors from across Ghana and abroad.

The lesson is both simple and profound: tradition and business are deeply intertwined. A royal funeral like that of the Asantehemaa demonstrates how cultural observances can awaken vast networks of trade, employment, and creativity. The economic ripples extended far beyond Kumasi – hotels were fully booked, airlines over-subscribed, artisans and caterers inundated with orders, and thousands of people found temporary work.

This reveals that cultural events can be more than solemn rituals; they can be structured as engines of growth. Just as Western countries have transformed traditions like Halloween into billion-euro annual industries, and the United States has built a $20 billion economy around Black Friday and Cyber Monday. African nations, too, can consciously develop and formalize our cultural practices to generate sustainable economic value while preserving their sacred meaning.

Imagine if our society normalize and encourage corporate brands to advertise respectfully at large funerals – much like they do at concerts, festivals, or sports events. It could ease the financial burden on families while offering companies a powerful cultural platform to engage audiences.

When harnessed thoughtfully, events like the Asantehemaa’s funeral can serve as models for cultural-driven local development – boosting tourism, supporting SMEs, and deepening pride in heritage. Ultimately, tradition, when viewed as both identity and enterprise, holds the power not only to sustain economies but also to nourish the human spirit.

Profile of Kofi Ayisi Aboagye

Kofi Ayisi Aboagye is a Chartered Accountant, Internal Audit Leader, and Business Advisor with over twelve years of experience in development finance, SME growth strategy, and corporate governance. He currently serves as Senior Manager, Internal Auditor where he leads risk-based audits and drives governance and performance reforms that strengthen institutional accountability. Beyond banking, Kofi is the Founder of NKAKA & Partners, a business advisory and capacity-building firm dedicated to helping small businesses and startups build sound financial systems, improve governance, and grow with confidence. His work with entrepreneurs focuses on strengthening financial discipline, enhancing transparency, and preparing enterprises to become investment-ready. Kofi’s approach blends technical precision with a people-centered philosophy. He views economic growth not just in financial terms but also through the values, traditions, and communities that shape it. This perspective informs his writing, including his article “Funerals and the Hidden Economy,” which examines how Akan traditions drive local commerce and employment. He is a member of both the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants, Ghana (ICAG), and holds an MBA from Warwick Business School, in the United Kingdom.

Kofi is passionate about financial integrity, SME empowerment, and transforming cultural assets into engines of economic value.

For engagements, contact kofiaboagyeghana@gmail.com.