Ghana is losing hundreds of millions of cedis weekly through unmonitored smuggling of rice, sugar, and other commodities, the Food and Beverages Association of Ghana warned, as criminal networks exploit porous borders to undermine local industries.
The smuggling crisis has reached alarming levels with billions of cedis in monthly losses, according to a statement released by FABAG on October 27, 2025. The association describes the situation as a double tragedy where honest traders face rigorous tax regimes while criminal networks prosper unchecked.
Intelligence from border communities and industry partners reveals sharp increases in smuggling of rice, cooking oil, sugar, alcoholic beverages, and textiles entering Ghana untaxed. These goods, often of substandard quality, are undermining local industries and eroding investor confidence.
FABAG estimates Ghana loses hundreds of millions of cedis every week due to unmonitored smuggling activities at both official and unofficial entry points. The group warns this unchecked situation threatens economic stability, weakens the cedi, and puts jobs at risk in manufacturing and distribution sectors.
John Awuni, FABAG Chairman, said the high import duties are fueling the illicit trade. Speaking on Citi TV earlier this year, Awuni disclosed that most importers are now routing their imports through Togo and Côte d’Ivoire, as shown clearly in imports data.
The smuggling crisis extends beyond food products to Ghana’s crucial cocoa sector. In the 2023 to 2024 season, an estimated 160,000 tonnes of cocoa were illegally moved across borders, according to Charles Amenyaglo, director of special services at the Ghana Cocoa Board. This represents over one third of Ghana’s total cocoa output and approximately 1.28 billion British pounds in value. Cocoa accounts for 15 percent of Ghana’s overall GDP.
The Cocoa Board’s anti-smuggling task force, with military assistance, has intercepted around 250 tonnes and over 10 people have been sentenced to prison terms ranging from three months to 10 years for smuggling this year.
President John Mahama has proposed new legislation to criminalize the destruction of cocoa farms for mining purposes, stating that legislative measures are being explored to prevent such destruction.
The European Union funded Strengthening Border Security in Ghana project, launched in 2020 and implemented with the Ghana Immigration Service, concluded in December 2024. The initiative aimed to enhance border management capabilities, update border management information systems, and ensure greater security while guaranteeing respect for human rights standards.
FABAG is calling for immediate action from government agencies. The association appealed to the Customs Division of the Ghana Revenue Authority, the Ministry of Trade and Industry, and National Security agencies to intensify enforcement at borders, deploy surveillance technology, and foster closer collaboration with local communities.
As the Finance Minister prepares to present the 2026 Budget, FABAG demands a full overhaul of the import tax regime, describing high duties and complex port procedures as major drivers of smuggling. The association emphasizes that urgent reforms are needed to protect Ghana’s borders, bolster local industries, and secure the future of legitimate businesses.
