Ghana’s sharply appreciating currency is contributing to a widening gap in customs revenue, with a shortfall of GH¢1.6 billion recorded in the first half of 2025, 12.7% below target, according to the Mid-Year Budget Review presented by Finance Minister Cassiel Ato Forson.
While the minister attributed the revenue miss to smuggling and systemic leakages at major entry points such as ports and borders, the impact of the cedi’s strong performance on customs revenue was not directly addressed. The Ghanaian cedi is currently buying at 10.44 and selling at 10.45 to the U.S. dollar, a level that has lowered the domestic value of duties collected on foreign-denominated imports.
The appreciation, which has been widely welcomed for reducing inflation and cutting import costs, has had the unintended effect of suppressing revenue from import duties, one of the government’s key tax income sources. With import values now translating into fewer cedis, government earnings at the ports have come under pressure, even as trade volumes hold steady.
The shortfall poses a material risk to Ghana’s fiscal performance for the year, particularly as the country implements reforms under the IMF-supported programme that hinge on improved domestic revenue mobilization.
Sources close to The High Street Journal indicate that the government is preparing a reorganization of the Ghana Revenue Authority (GRA), checking its operations, to address the persistent leakages and prevent internal facilitation of under-declaration and revenue loss.
Additional policy measures outlined in the budget review include the rollout of artificial intelligence tools to reduce manual interference in customs valuation, a new Advanced Cargo Information (ACI) system to enable pre-arrival risk assessment, and a restructuring of the Customs Division to improve oversight and accountability.
While the cedi’s rebound has brought macroeconomic stability and investor confidence, it also presents trade-offs for revenue collection, particularly in areas like customs that rely on foreign exchange benchmarks. Closing enforcement gaps at entry points may be key to offsetting the revenue-dampening effects of the stronger currency in the months ahead.
