The former GUTA President, Joseph Obeng, says he is not rejecting the idea of strengthening Ghana’s insurance industry; however, he insists the Marine Cargo Act, in its current form, is not fit for purpose.
For him, while the policy aims to retain insurance premiums within Ghana, he argues that critical practical questions remain unanswered, making implementation premature and potentially harmful to businesses.
The Marine Cargo Act, if implemented, Joseph Obeng says, will require that all goods imported into Ghana be insured locally through insurance companies licensed in the country.
But the ex-president of the traders’ association believes such provisions in the act will be inimical to businesses. To justify his opposition, Joseph Obeng outlines five reasons why the current act, if implemented, will be detrimental to the business community.
Custodial Penalties for Business Decisions
One of his strongest objections is the provision that allows custodial punishment for importers who fail to insure their goods locally. He describes this as morally excessive and counterproductive.
For a business community already grappling with high costs and global competition, criminalizing an insurance choice, he argues, sends the wrong signal. Moreover, it does not foster collaboration or confidence.
“Specifically, I have asked them to let us know why an importer should be punished with a custodial penalty for not using the service of an insurance company in Ghana,” he noted.
He adds, “It is morally wrong for the law to impose custodial punishment on businesses that do not insure in the country. Such punitive measures are excessive and do not foster collaboration or confidence within the business environment.
Unproven Local Capacity
Joseph Obeng further questions whether local insurers have demonstrated sufficient technical and financial capacity to handle complex marine cargo risks.
Experts explain that marine insurance is deeply integrated into global trade systems, often involving international underwriters and reinsurance structures. He says local firms must provide proof of capacity, with credible references, before compelling businesses to rely solely on them.
Without clear evidence of capability, he argues, businesses are being asked to take on additional risk.
He insists that, “Local insurance companies have not sufficiently demonstrated that they possess the capacity, experience, or competitive pricing required to handle marine cargo insurance effectively.”
Cost and Delays Concerns
Another concern is whether the policy will increase the cost and time of doing business. The former President of GUTA fears that additional documentation, verification procedures, and coordination between local and foreign intermediaries could slow cargo clearance and inflate expenses.
This is very critical to the business community at a time when efficiency is critical to business success. He says these concerns have not been conclusively addressed.
“I have also requested that they provide details of their intermediary insurance companies abroad and explain how this policy will not add time and cost to doing business,” he insists.
International Trade Realities
In many trade arrangements, foreign suppliers retain insurable interest in goods due to credit terms. Suppliers often choose insurers based on long-standing global partnerships.
Joseph Obeng argues that these established practices cannot simply be replaced by domestic regulation without disrupting commercial relationships.
“Our suppliers have insurable interest in the goods we import based on existing credit arrangements. In many instances, suppliers have their own preference for insurance companies at any place and on terms of their choosing. These are standard international trade practices that cannot simply be ignored,” he added.
Inconclusive Stakeholder Engagement
Perhaps most significantly, he suggests that engagement between regulators and the trading community has not been fully resolved.
He says legitimate questions raised by GUTA during his tenure were promised answers, but those responses have yet to materialize.
Until clear explanations are provided on capacity, intermediary arrangements abroad, cost implications, and compliance practicality, he believes implementation lacks the necessary consensus.
The Bottomline
The former President of GUTA’s position is that strengthening local industry must be built on competitiveness, transparency, and collaboration, not to the detriment of the business community.
Whether regulators address these concerns or push ahead regardless may determine whether the Marine Cargo Act becomes a catalyst for industry growth, or another rift between policymakers and Ghana’s business community.
