High import duties, cumbersome port procedures fuel smuggling surge – FABAG

The Food and Beverages Association of Ghana (FABAG) has raised the alarm over the country’s escalating smuggling crisis, warning that high import duties and cumbersome port procedures are driving illicit trade and draining the national economy of billions of cedis each month.

In a statement released on 27 October, FABAG said smugglers are now earning massive profits while the government loses vital tax revenue and legitimate businesses struggle to compete.

According to the Association, the situation has reached crisis levels, with new intelligence from its partners and border communities revealing a sharp rise in the illegal importation of rice, cooking oil, sugar, alcoholic beverages, and textiles.

“These goods often enter Ghana untaxed, sometimes through official checkpoints and other times via unapproved routes. Many of them are of substandard quality, undermining local industries, destroying fair competition, and eroding investor confidence,” the statement said.

FABAG described the situation as “a double tragedy” in which, according to its President Mr John Awuni, “honest traders are being unfairly penalised while criminal networks prosper under a system that punishes compliance and rewards evasion.”

The group estimates that Ghana is losing hundreds of millions of cedis every week to smuggling-related leakages at both official and unofficial entry points, warning that the unchecked trade threatens macroeconomic stability, weakens the cedi, and jeopardises jobs in the manufacturing and distribution sectors.

“The government cannot afford to continue losing such significant revenue while burdening ordinary Ghanaians and compliant businesses with additional electricity and water tariffs,” FABAG stressed.

The Association called on the Ministry of Finance, the Ghana Revenue Authority (GRA), the Ministry of Trade and Industry, and National Security agencies to intensify border surveillance and enforcement.

It also urged the use of modern monitoring technology and stronger collaboration with border communities to dismantle smuggling networks.

FABAG noted that smuggling has evolved into “a highly organised, well-funded criminal enterprise” that could cripple Ghana’s industrial base if not addressed with urgency.

With the Finance Minister preparing to present the 2026 Budget Statement, the Association renewed its demand for a comprehensive overhaul of the import tax regime, arguing that excessive duties and bureaucratic port procedures are the primary triggers of smuggling.

“The issue transcends economics, it is now a matter of national security and survival,” the statement warned, calling for decisive reforms to protect Ghana’s borders, preserve jobs, and sustain local industries.