Port Delays and High Duties Burden Businesses, Warns Baah

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Import Export Picture
Import Export Picture

Former Ghana National Chamber of Commerce and Industry (GNCCI) President Seth Adjei Baah has cautioned that persistent bottlenecks at Ghana’s ports combined with excessive import duties are driving up business costs and encouraging informal trade practices that undermine government revenue.

Speaking in an interview, Baah highlighted how structural inefficiencies in the cargo clearance system force importers to pay demurrage charges that accumulate daily after an initial free period, regardless of whether delays stem from operational failures beyond their control.

Baah explained that containers remaining at port beyond seven days trigger automatic daily charges that importers must bear even when delays result from public holidays, labour disputes or regulatory processing bottlenecks. These costs ultimately increase prices for consumers and weaken the competitiveness of Ghanaian businesses.

The business leader argued that Ghana’s import duty structure exacerbates compliance challenges by making formal channels prohibitively expensive. He warned that when duties approach 50 percent of goods value, businesses face unsustainable financial pressure that pushes them toward alternative arrangements.

According to Baah, excessively high charges distort market incentives and shift activity away from formal channels. He noted that some traders clear goods through neighbouring ports where duties are lower before moving them into Ghana through informal routes, depriving the government of revenue while undermining trade integrity.

Baah stressed that the challenge lies not in business unwillingness to pay taxes but in the absence of balanced structures that align revenue collection with economic realities. He maintained that fairer, more efficient systems would broaden compliance and improve collections over time.

Recent reports from industry bodies support Baah’s concerns. The Ghana Institute of Freight Forwarders revealed in July 2025 that importers incur approximately GHS 30 million weekly in demurrage fees due to regulatory delays at agencies including the Environmental Protection Authority and Ghana Standards Authority.

The Food and Beverages Association of Ghana reported in January 2026 that labour productivity at Tema Port’s bulk section had collapsed to 200 metric tonnes daily compared to a minimum 2,000 metric tonnes previously, causing severe operational disruptions and mounting demurrage costs.

Ghana operates under the Economic Community of West African States (ECOWAS) Common External Tariff system with five duty bands ranging from zero percent for essential social goods to 35 percent for protected items. Value Added Tax and additional levies push total import costs significantly higher.

Baah called for comprehensive port reforms and substantial duty reductions to encourage voluntary compliance and position formal trade as the most viable option. He emphasized that while government requires revenue, properly designed systems would achieve better outcomes for businesses, consumers and state finances.

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