Non-Tariff Barriers Add Up to 20% Cost of Trade in West Africa – Trade Minister
Ghana’s Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has identified non-tariff barriers as the biggest impediment to regional trade in West Africa, warning that they continue to significantly increase the cost of doing business across the sub-region.
Speaking at the 5th Joint Meeting of ECOWAS Ministers of Trade and Industry in Accra, the Minister said non-tariff barriers are adding between 15 and 20 percent to the cost of cross-border trade, undermining efforts to deepen regional integration and accelerate economic growth.
“Non-tariff barriers remain the most stubborn obstacle in all of this, adding an estimated 15 to 20 percent to the cost of cross-border trading in West Africa,” she stated.
According to the Minister, unlike tariff barriers, which are transparent and can easily be factored into business costs, non-tariff barriers are often hidden and difficult to address, making them more disruptive to trade flows.
“I keep saying I am not afraid of tariff barriers. If it is five percent, you can factor it into your cost of production,” she noted.
She explained that traders and businesses frequently encounter challenges such as administrative bottlenecks, excessive border checks, inconsistent regulations, delays in customs clearance, and other unofficial impediments that increase the cost and uncertainty of moving goods across borders.
“But with respect to faceless non-tariff barriers, it continues to create a challenge for us to resolve it,” she added.
The Minister stressed that the impact of these barriers extends beyond traders, affecting businesses throughout the supply chain and ultimately increasing prices for consumers.
“The premium is paid by our traders and absorbed by businesses and passed on to consumers,” she emphasized.
Her remarks come as member states of the Economic Community of West African States intensify efforts to promote regional trade, industrialisation and economic integration. They also coincide with growing efforts to maximize opportunities under the African Continental Free Trade Area, which aims to create the world’s largest free trade area by connecting markets across Africa.
The meeting in Accra brought together trade and industry ministers from across West Africa to deliberate on strategies for removing trade bottlenecks, strengthening regional value chains, boosting industrial production and enhancing economic cooperation among member states.
Participants at the forum noted that reducing non-tariff barriers remains critical to unlocking the full potential of intra-African trade. They argued that eliminating unnecessary administrative and regulatory obstacles would lower business costs, improve competitiveness and create greater opportunities for businesses operating across the region.
Analysts have long maintained that while significant progress has been made in reducing tariffs under regional trade agreements, non-tariff barriers continue to undermine the benefits of trade liberalisation by slowing the movement of goods and increasing transaction costs.
As West African countries seek to build stronger regional markets and accelerate economic transformation, policymakers say addressing these barriers will be essential to improving trade efficiency, attracting investment and delivering the benefits of regional integration to businesses and consumers alike.
