Economist Dr. Paul Appiah Konadu has revealed that a full implementation of a 24-hour economy at Ghana’s ports could dramatically reduce the over $20 million in annual demurrage charges shouldered by importers due to bureaucratic delays and inefficiencies.
In an exclusive interview with The High Street Journal, Dr. Konadu highlighted the mounting financial toll of demurrage on importers in the country, leading to high operational costs and high prices of imported goods.
Demurrages are penalties importers pay when their goods overstay at the ports due to delays in clearance. According to data he cited, importers in Ghana paid a staggering $24 million in demurrage fees in 2022, up from $19 million in 2021.
To him, these are avoidable costs that businesses are being forced to bear. In many cases, he says the delays are not even the fault of the importer. Sometimes it’s because banks aren’t open, or other port agencies aren’t available to process the paperwork quickly enough.
Bureaucracy & Bottlenecks Drive Up Business Costs
Dr. Konadu emphasized that the limited-hour operations of port agencies and partner institutions, including customs, shipping lines, and banks, are a major bottleneck. These delays often push clearance timelines beyond allowable limits, triggering costly demurrage.
He therefore maintains that if the importer can’t pay duty because the bank is closed, or if paperwork is stuck at an agency that doesn’t work on weekends, how is it fair to punish the importer with demurrage?
“I think one thing that also has to be addressed is the issue of demurrage. You know, sometimes things get to the ports and out of no fault of yours as an importer, you have to pay demurrage because your container or goods have stayed in the ports for more than a week or so. Meanwhile, probably the delay is a result of some paperwork or some of the processes at the ports,” he lamented.
24-Hour Economy: A Game-Changer for Port Efficiency
He threw his full support behind the implementation of the 24-hour economy at Ghana’s ports, noting that round-the-clock operations would significantly ease congestion, eliminate unnecessary delays, and create a more predictable trading environment.
Dr. Konadu noted that a 24-hour system would not only cut demurrage but also reduce overall import costs, helping to stabilize prices and boost Ghana’s competitiveness.
“There have been talks about implementing the 24-hour economy at the ports. Banks working 24/7 so that people paying their duty can pay 24/7. All other agencies involved in the clearing process working 24/7, I think that is also key to making sure that the processes at the ports are streamlined. And that people can clear their goods at any time and within time, so as to reduce the issue of demurrage,” he explained.
He continued that, “these are avoidable costs which importers have to bear, which otherwise could have been avoided. And thereby leading to a reduction in the cost of imports. So I think it’s very important the engagement should continue. All unapproved fees and charges at the ports should be eradicated, should be done away with. So as to reduce the cost of imports for the average importer.”
The economist welcomed President Mahama’s recent commitment to tackling illegal and unapproved charges at the ports but insisted the conversation must also include broader reforms on clearance processes, operating hours, and digitization.
