Persistent inefficiencies at Ghana’s ports and high import duties are increasing the cost of doing business and encouraging revenue leakages, business leader and former President of the Ghana Chamber of Commerce and Industry, Seth Adjei Baah, has warned.
In an interview with THSJ, he said structural bottlenecks in the clearance process continue to place an undue financial burden on importers, particularly through delays that trigger demurrage charges. He explained that once containers remain at the port beyond the initial free period, importers begin incurring daily costs regardless of the cause of the delay.
“There are a lot of bottlenecks in clearing goods. As a result, delays increase costs because, after the first seven days, you start paying demurrage. And that is a lot of money,” he said.
According to the business leader, the rigid nature of port charges means importers bear the full cost of inefficiencies within the system, even when delays arise from operational challenges beyond their control. He noted that neither public holidays nor labour disruptions exempts importers from accumulating demurrage, a situation that ultimately raises the price of goods and weakens competitiveness.
He identified Ghana’s import duty regime as a critical factor worsening compliance and encouraging informal practices. He argued that excessively high duties make it difficult for businesses to operate transparently, especially in a trading environment already pressured by tight financing conditions and rising operational costs.
“We therefore believe there should be greater efficiency at the port. Secondly, duties should be reduced drastically. Otherwise, people will resort to alternative means of bringing in their goods without paying duties,” he warned.
He explained that in some cases, importers are required to pay duties amounting to nearly half the value of their goods, a level he described as economically unsustainable for many businesses. Such high charges, he said, distort incentives within the system and shift activity away from formal channels.
“When people import goods into this country and are required to pay up to 50 per cent in duties, it becomes a significant burden,” he said, adding that inflated charges often result in revenue losses rather than gains for the state.
He noted that when official costs become prohibitive, some traders explore alternative routes, including clearing goods through neighbouring ports where duties are lower or exemptions apply, before finding informal ways to move those goods into Ghana. While such practices may reduce costs for individual traders, he stressed that they ultimately deprive the government of revenue and undermine the integrity of the trade system.
According to him, the problem is not a lack of willingness by businesses to pay taxes and duties, but rather the absence of a balanced structure that aligns revenue mobilisation with economic realities. He argued that a fairer, more efficient system would broaden compliance and improve collections over time.
“We must understand that while the country needs revenue, we also need to do the right thing,” he said. “We should put the right structures in place so that people will be willing and comfortable to pay their duties.”
He maintained that enforcement measures must be complemented by well-designed systems that encourage voluntary compliance and position formal trade as the most viable option. He believes that with the right policy adjustments, Ghana can improve revenue generation while easing the cost pressures facing businesses and consumers alike.
