Informal Cross-Border Trade Hits GH¢31bn

Ghana’s informal cross-border trade with Togo, Burkina Faso and Côte d’Ivoire reached GH¢31 billion in the first three quarters of 2025, surpassing formal trade with the three neighbouring countries by more than GH¢10 billion.

Data from the Ghana Statistical Service (GSS) show that informal trade amounted to GH¢31 billion between January and September 2025, compared with GH¢20.1 billion recorded through formal trade channels during the same period.

The figure represents six percent of Ghana’s total trade for the first three quarters of 2025, highlighting the significant contribution of informal commerce to the country’s regional trade and economic activity.

Government Statistician, Dr. Alhassan Iddrisu, said the findings should inform policies aimed at supporting traders and encouraging gradual formalisation rather than targeting operators in the informal sector.

“Total Informal Cross-Border Trade across the first three quarters of 2025 was GH¢31 billion. This represents six percent of total trade for the period,” he said.

Ghana recorded trade surpluses in both formal and informal trade during the period. However, the informal trade surplus, which peaked at GH¢665.3 million in the second quarter, fell sharply to GH¢49.3 million in the third quarter.

Trade patterns varied considerably across the three neighbouring countries. Trade with Togo remained predominantly informal, with the informal share rising from 70.5 percent in the first quarter to 77.8 percent in the third quarter.

In contrast, formal trade with Togo increased to 33.8 percent in the second quarter before declining to 22.2 percent in the third quarter.

Informal trade also accounted for more than 60 percent of Ghana’s total trade with Côte d’Ivoire throughout the three quarters.

Burkina Faso recorded a different trend. Formal trade accounted for nearly 58 percent of total trade in the first quarter, but informal trade became dominant in the second and third quarters, representing more than 52 percent of trade.

Despite Ghana’s sustained trade surpluses with Burkina Faso and Côte d’Ivoire, the trade deficit with Togo widened from GH¢725.5 million in the first quarter to GH¢994.1 million in the third quarter.

Burkina Faso remained the leading destination for Ghana’s agricultural exports, accounting for an average of 62.9 percent. Togo was the main destination for fuel exports, receiving an average 44.1 percent, as well as food and beverage exports, each averaging 38.1 percent.

On the import side, livestock was sourced mainly from Burkina Faso, while agricultural raw materials largely originated from Côte d’Ivoire. Most other imported commodities came predominantly from Togo.

Cooking oil remained the largest informal import, although its share declined from 16.3 percent in the first quarter to 14.4 percent in the third quarter.

The GSS also identified a widening food trade deficit with Ghana’s neighbours, increasing from about GH¢400 million in the first quarter to GH¢800 million by the third quarter. Meanwhile, the country’s non-food trade surplus narrowed from GH¢1 billion to GH¢800 million.

To improve trade management, the GSS recommended simplifying registration and licensing procedures for small-scale traders, upgrading border infrastructure and integrating data systems across government institutions.

It also called for increased local production of commodities such as rice, cooking oil and livestock, alongside greater regional cooperation on customs procedures and data sharing under the African Continental Free Trade Area.