A recent survey by the United Nations Development Programme (UNDP) has reported a significant increase in informal cross-border trade at Ghana’s Aflao and Elubo borders due to high customs duties and the risk of extortion.
The report revealed that long delays in customs clearance are prompting traders to rely on middlemen who charge fees to expedite the process, depriving the state of much-needed revenue.
Additionally, inadequate infrastructure and limited storage facilities are negatively impacting trade efficiency, particularly for youth and women-led Micro, Small, and Medium Enterprises (MSMEs).
Ms. Jemima Michael, Programmes Associate with the UNDP, highlighted the challenges during a stakeholders’ dialogue on the African Continental Free Trade Area (AfCFTA) protocol on women and youth-led businesses in Cape Coast.
According to Ms. Michael, despite efforts to streamline border management, the lack of modern logistics and equipment has hindered the effectiveness of security personnel and border officials.
She noted that women and youth-led MSMEs faced similar additional barriers such as security threats and unofficial payments, making it difficult for them to participate fully in cross-border trade.
“Our findings underscore the need for urgent investment in border infrastructure, policy reforms, and anti-corruption measures to support MSMEs and facilitate trade,” Ms. Michael said.
She recommended streamlining customs procedures, strengthening border security, providing financial and security support to traders, and adopting digital trade solutions like electronic certification to enhance trade efficiency.
However, Ms. Michael expressed relief that no formal gender discrimination in trade policies was observed, though women-led businesses still struggle with limited financial support, inadequate networking opportunities, and security challenges.
Speaking at the event, Mr. Divine Kutortse, Programme Manager at the AfCFTA National Coordinating Office, affirmed Ghana’s commitment to driving Africa’s economic transformation through AfCFTA.
He stressed the importance of inclusive growth, ensuring that women and young entrepreneurs have the necessary tools, networks, and support to benefit from AfCFTA.
“AfCFTA is about breaking down barriers, opening up markets, and creating pathways for women and youth-led businesses to thrive,” Mr. Kutortse said.
“When women and young people succeed, Ghana succeeds. And when Ghana succeeds, Africa moves forward,” he added.
As AfCFTA continued to reshape Africa’s trade landscape, it is imperative for government to address the challenges to achieve sustainable and inclusive economic growth.
