Turning Togo trade into Ghana’s economic advantage

The country’ informal trade landscape has long been a vital but under‑appreciated part of the economy. The latest data from the Ghana Statistical Service shows that Togo accounted for over 60 per cent of Ghana’s informal trade with its three land neighbours in the fourth quarter of 2024.

This dominance highlights both the opportunities and the challenges for the country’s economic development.

On one hand, this level of activity demonstrates how informal trade sustains livelihoods, particularly in border communities. Thousands of small traders, transporters and processors depend on the import and export of everyday goods such as cooking oil, rice, soft drinks and livestock. These ventures provide employment, foster entrepreneurship, and allow households to meet their daily needs.

 In many cases, the informal system enables small‑scale operators to participate in markets that would otherwise be inaccessible. The flow of goods between Ghana and Togo shows the adaptability of border economies, which respond to demand and supply dynamics more rapidly than formal channels.

However, the figures also underscore structural vulnerabilities. Ghana ran a trade deficit with Togo in this period, importing more than it exported. While informal trade keeps goods moving, it escapes regulation and taxation, leading to lost revenue and limited data for effective policy planning.

In addition, excessive reliance on imports from Togo risks weakening domestic processing industries and diminishes opportunities for local value addition. If unaddressed, these factors could reduce the long‑term benefits that informal trade is capable of providing.

The challenge for Ghana is to strike a balance between preserving the livelihood benefits of informal trade and transitioning it towards formal, productive, and export‑oriented activities. Improved border infrastructure, simplified trader registration, access to microfinance, and support for local processing industries are essential steps. Such measures would enable Ghanaian businesses to capture greater value, strengthen domestic production, and reduce dependency on imports.

Informal trade with Togo is not merely a statistic. It is a reflection of entrepreneurial energy, resourcefulness and regional interconnectedness. The task now is to ensure that this energy contributes to broader economic growth, job creation, and the development of a competitive, inclusive economy.

Ghana cannot afford to treat this opportunity lightly. With the right policies and investment, what is now largely informal can become a cornerstone of the country’s regional trade strength.