Address stakeholder concerns on Ghana Shippers’ Authority Act, 2024
The appeal by the Ghana Union of Traders Association (GUTA) and others to President Nana Addo Dankwa Akufo-Addo, urging him not to assent to the Ghana Shippers’ Authority Act, 2024, until critical issues raised by stakeholders are resolved, underscores a significant challenge in the legislative process—insufficient stakeholder consultation.
The concerns raised by GUTA and other members of the business community reveal a need for a more inclusive and transparent approach to law making, especially when the outcomes have far-reaching implications for vital sectors like shipping and trade.
One of the key issues highlighted by GUTA is the lack of consultation with the business community on critical provisions of the Act. This omission has led to significant discontent, particularly regarding the registration of shippers and shipping service providers, as well as the reintroduction of the Advance Shipment Information System. Effective governance requires that all affected parties have a voice in the development of laws that will govern their activities. The absence of this dialogue not only breeds mistrust but also risks the creation of laws that may be impractical or harmful to the very sectors they aim to regulate.
To rectify this, there must be a structured framework for stakeholder engagement in the legislative process. This can be achieved by establishing a consultation period before the finalization of any bill, during which stakeholders are given ample time to review and provide feedback.
The concerns surrounding Clause 3(1d) of the new law, which pertains to the Ghana Shippers Authority’s (GSA) role in representing shippers’ views on freight rates, shipping space availability, and port charges, also require attention. The ambiguity regarding whether the GSA will negotiate freight rates and cargo space on behalf of shippers, despite not being legally included in the contract of carriage, could lead to operational inefficiencies and conflicts.
To address this, the law should clearly define the boundaries of the GSA’s responsibilities. If the GSA is to play a role in negotiations, its mandate must be explicitly stated, and mechanisms should be put in place to ensure that this does not lead to conflicts of interest or undermine the contractual relationships between shippers and carriers.
The dual role of the GSA as both a facilitator and a regulator, particularly in resolving disputes in commercial dealings, poses a potential conflict of interest that could compromise its impartiality. Furthermore, the imposition of a two percent levy on the gross freight value of shipments exclusively targeting carriers, while the GSA’s regulatory oversight extends to all stakeholders, raises questions of fairness and equity.
A potential solution could be the establishment of an independent body or a neutral third party to handle dispute resolution, thereby maintaining the GSA’s impartiality. Additionally, the levy structure should be revisited to ensure that it is equitable and does not disproportionately burden one group within the shipping industry.
The universal language of trade is negotiation, and it is crucial that the government adopts a more collaborative approach to addressing the challenges facing the sector. Moving forward, it is imperative that the President heeds the call from GUTA and other stakeholders by withholding assent to the Act until all critical issues are fully resolved. This period should be used to engage in meaningful dialogue with all affected parties, ensuring that the final law is one that is not only well-crafted but also widely accepted by the very community it aims to serve. By doing so, Ghana can strengthen its legislative process, build trust among stakeholders, and ultimately create a more conducive environment for business and trade.
