Two months after Ghana’s mandatory local cargo insurance directive took effect, the country’s shipping and insurance regulators have intensified their compliance drive, warning that a continued reliance on foreign insurers is draining millions of dollars from the domestic economy each year.
Speaking at a sensitisation seminar held at the Ghana Shippers’ House in Accra on Wednesday, April 8, the Chief Executive Officer of the Ghana Shippers’ Authority (GSA), Professor Ransford Gyampo, disclosed that despite the dominance of sea trade and the requirement for local coverage, only about six percent of imports into Ghana are currently insured by local providers. He added that approximately 75 percent of importers have little or no knowledge of the insurance cover on their cargo or their rights and obligations under the law.
The directive, issued by Finance Minister Dr. Cassiel Ato Forson, took effect on February 1, 2026, and requires all commercial imports into Ghana to be insured locally under Section 222 of the Insurance Act, 2021 (Act 1061). Enforcement is being carried out jointly by the Ghana Revenue Authority (GRA) and the Bank of Ghana (BoG).
The Ghana Insurance Association estimates that close to $100 million in marine insurance premiums currently flows to foreign insurers annually, revenue that local industry officials say could otherwise stimulate economic growth, create jobs, and strengthen the domestic financial services sector. Government projects the policy could generate close to GH¢300 million annually when fully implemented.
Most of Ghana’s imports are transacted on a Cost-Insurance-Freight (CIF) basis, meaning the seller arranges insurance. Prof. Gyampo noted that this arrangement has historically resulted in premiums being paid abroad, with Ghanaian importers left with limited recourse when claims arise. Foreign-arranged coverage frequently involves difficulties in determining accurate policy values, delays in claims processing, and dispute resolution mechanisms beyond the reach of local law.
Implementation has nonetheless proceeded at what officials describe as a slow pace since the February 1 enforcement date, with some importers still citing insufficient information on compliance procedures and documentation requirements. Stakeholders at the April 8 seminar engaged regulators on premium pricing, customs clearance integration, penalties for non-compliance, and the responsibilities of brokers and freight agents under the new regime.
The Ghana Chamber of Shipping has identified an additional complication: foreign suppliers frequently extend trade credit to Ghanaian importers, with such arrangements often requiring insurance to be procured offshore as part of the credit package, creating a commercial tension that enforcement alone cannot easily resolve.
Despite the implementation challenges, authorities say the policy represents a structural shift in how Ghana manages trade risk and retains financial value domestically. Nigeria, which operates a similar mandatory local insurance regime, retains an estimated $600 million annually in premiums, a benchmark that Ghanaian officials say illustrates the long-term potential of full compliance.
