High Logistics Costs Undermine Competitiveness of Ghanaian Businesses
Ghanaian businesses are increasingly grappling with rising logistics costs, a development experts warn is weakening competitiveness, pushing up consumer prices and limiting the country’s ability to fully benefit from regional trade opportunities under the African Continental Free Trade Area (AfCFTA).
Across sectors including manufacturing, agriculture, retail and exports, firms are contending with escalating costs linked to transportation, warehousing, port charges and persistent supply chain inefficiencies. Analysts say these pressures are becoming a major constraint on productivity and business growth.
Economist and Executive Director of the Industrial Transformation and Trade Centre (ITUC-Africa), Dr. Hod Anyigba, says logistics has become one of the most critical yet under-discussed drivers of business performance in Ghana.
“Every additional cost incurred in moving goods from the factory, farm or port to the final consumer ultimately affects the competitiveness of businesses,” he said.
According to him, logistics is no longer a supporting function but a core factor in determining profitability and market survival.
Rising Costs Filtering Through to Consumers
Dr. Anyigba explained that rising logistics expenses increase production costs, squeeze profit margins and often force businesses to pass on the burden to consumers.
“For many businesses, logistics has become a major determinant of pricing. When transport and fuel costs rise, the final impact is higher prices for consumers,” he noted.
He added that manufacturers are particularly exposed because they rely heavily on imported raw materials while also bearing high distribution costs for finished goods.
Export-oriented businesses, he said, are also struggling to remain competitive in international markets where pricing is highly sensitive.
AfCFTA Gains at Risk
While Ghana’s participation in the AfCFTA offers access to a continental market of more than 1.4 billion people, Dr. Anyigba warned that high logistics costs could undermine the ability of local firms to compete effectively.
“If our goods are more expensive to move than those of competitors, we risk losing market share despite having quality products,” he cautioned.
Infrastructure Gaps Driving Inefficiencies
He identified weak transport infrastructure as a major driver of high logistics costs, citing poor road networks, congestion, limited rail connectivity and inefficiencies in cargo handling at ports.
These challenges, he said, result in delays, higher fuel consumption, increased vehicle maintenance costs and higher storage expenses for businesses.
“Time is money in business. Delays in moving goods affect production schedules and increase overall operating costs,” he stated.
SMEs Worst Affected
Small and medium-sized enterprises (SMEs), which form the backbone of Ghana’s economy, are among the most affected.
Unlike large corporations, SMEs often lack the scale to negotiate favourable transport rates or invest in dedicated logistics systems, leaving them highly exposed to cost pressures and limiting their ability to expand.
Call for Investment and Digital Reforms
Dr. Anyigba has called for increased investment in transport infrastructure, improved logistics planning, and policy reforms aimed at removing bottlenecks across the supply chain.
He also advocated greater use of digital tools such as electronic documentation systems, cargo tracking platforms and integrated logistics solutions to improve efficiency.
“Ghana cannot become a competitive manufacturing and export hub if logistics costs remain high. We need targeted investments and reforms that make it easier and cheaper to move goods across the country and beyond,” he said.
He stressed that efficient logistics systems are essential for industrialisation, export growth and job creation, adding that addressing the challenge could significantly improve Ghana’s long-term economic competitiveness.
