The Finance Minister, Dr. Cassiel Ato Forson, is earning accolades from the Food and Beverages Association of Ghana (FABAG) for what it describes as a bold and decisive policy aimed at protecting government revenue and curbing long-standing smuggling practices.
In a statement, the association applauded the Ministry of Finance for directing that selected transit goods entering Ghana must now come through the country’s seaports rather than land borders.
Per the directive from the Minister, affected commodities include rice, sugar, flour, textiles, spaghetti, and tomato paste. These products, FABAG says, have frequently been at the center of smuggling and tax evasion schemes.
According to the association, the decision marks a significant step toward addressing a loophole that has allowed some traders to exploit the transit trade regime for years.
Prior to the ban, some traders declared goods as transit cargo supposedly destined for neighboring countries but later diverted them into Ghana’s local markets through land borders without paying the required duties and taxes.
FABAG says the practice has cost the country substantial revenue while also creating unfair competition for legitimate businesses.
FABAG further believes routing these goods through seaports will allow authorities to conduct better inspection, monitoring and documentation of cargo, reducing the chances of diversion.
“The Food and Beverages Association of Ghana (FABAG) believes that this policy decision demonstrates the government’s commitment to strengthening trade regulation, safeguarding government revenue, and protecting legitimate businesses operating within the country,” the statement indicated.
The group added that stronger port supervision would make it much harder for smugglers to bypass the system, ensuring that appropriate taxes are paid before goods reach the market.
Aside from the revenue gains, the association says the move will also restore fairness in the marketplace. Local manufacturers and legitimate importers have long complained that smuggled products entering through land borders undercut their prices, making it difficult for compliant businesses to compete.
FABAG is therefore urging key state agencies, including the Ghana Revenue Authority and the Ghana Customs Division, to enforce the directive strictly.
The association stressed that consistent and uncompromising enforcement will be critical to ensuring that the policy achieves its intended objective of improving revenue collection and protecting Ghana’s trade environment.
“Ghana has lost substantial revenue due to the widespread abuse of the transit regime. Unscrupulous traders have taken advantage of the system by declaring goods as transit goods cargo destined for neighboring countries, only for such goods to be illegally diverted into the Ghanaian market through land borders without the payment of the appropriate duties and taxes,” FABAG noted.
It continued, “This practice has not only deprived the State of significant revenue but has also created an uneven playing field for legitimate manufacturers, importers, and distributors who comply with Ghana’s tax and regulatory requirements.
FABAG believes the directive signals a renewed effort by the government to close long-standing loopholes in the country’s trading system—an action it believes will benefit both the state and legitimate businesses.
