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Business & Economy

Border Duty Loopholes Driving Surge in Ghana’s Smuggled Rice and Sugar

Smuggling of rice and sugar in Ghana surges due to duty gaps with neighboring countries, harming local businesses, farmers, and revenue, FABAG urges urgent government action

Border Duty Loopholes Driving Surge in Ghana’s Smuggled Rice and Sugar
Solomon Boakye
Nov 17, 2025

While Ghanaians go about their daily lives, filling plates with rice and sweetening their tea with sugar, the very staples of many households are being overshadowed by illegal imports.

Local producers and traders, who work tirelessly to supply these essential goods, are struggling to survive in a market flooded with smuggled products.

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The Food and Beverages Association of Ghana (FABAG) says the cause is very clear; “Who benefits from this negligence? While legitimate businesses pay their taxes, adhere to regulations, and create employment, they now bear the brunt of unfair competition from illegal traders.”

FABAG explained that “the primary driver of smuggling is the significant duty differential between Ghana and its neighboring countries. This disparity offers strong incentives for traders to evade official channels and exploit cheaper duties abroad.”

Border posts such as Aflao (Togo) and Elubo (Ivory Coast) have become hotspots for this illicit trade. For honest traders, every shipment that avoids taxes is a direct hit to their income, threatening not only their businesses but the livelihoods of the workers, farmers, and families who depend on them.

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To tackle the problem, FABAG urged urgent government action, including nationwide crackdowns by GRA Customs, enhanced border management with digital monitoring, tighter coordination between the Ministry of Trade, National Security, and border patrol units, and a fair review of import taxes and tariffs to level the playing field.

“Smuggling constitutes economic sabotage. Ghana cannot continue to lose revenue and jobs because of negligence in enforcing trade laws,” the association warned.

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If unchecked, FABAG cautioned, smuggling could devastate Ghana’s formal food import sector and domestic rice production, depriving workers and farmers of income and the state of vital revenue, all while ordinary households face an unpredictable market for their everyday staples.

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Previous Article The Psychological Impact of E-Levy Removal on Ghana's Digital Transactions –2025 Survey Reveals Gov’t Rakes in 57% More Revenue Than Projected From Repealed E-Levy – Was the Repeal Rushed?
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