Analyst calls for review of import tariffs
Economic analyst Dr Leonard Larbi has urged the government to carry out a comprehensive review of Ghana’s import tariff regime, warning that current measures are hindering growth and industrialisation.
Speaking on Business Breakfast on Zed FM, Dr Larbi said tariffs should protect and nurture local industry but criticised Ghana’s practice of imposing high duties on many goods that are not produced domestically.
He argued this approach raises the cost of living, undermines local competitiveness, and stifles wealth creation.
“Tariffs are meant to support local manufacturers, but when you place high tariffs on goods that the country does not produce, you simply make imported items prohibitively expensive for ordinary people,” he stated.
Dr Larbi illustrated his point with the example of vehicle imports, saying a car purchased in the United States for about USD3,000 can become much more expensive once transport costs, duties, and taxes are added at the port.
He also highlighted the impact of tariffs on construction inputs such as cement, noting that protectionist policies can distort markets rather than foster domestic capacity.
Beyond tariffs, the analyst called for a return to basic economic management: fixing the credit system, creating reliable financial identities for citizens, and lowering interest rates to enable credit access and the building of generational businesses.
Dr Larbi described current policy choices as short-term and unsystematic, likening them to a jungle approach to economic management that too often relies on extracting revenue from the poor.
“There needs to be a systematic approach so people can access credit and build businesses that pass wealth to the next generation,” he said.
Dr Larbi also urged policymakers to prioritise reforms that encourage investment, formalise financial records, and make borrowing more affordable.
