By Oscar Akaba
Introduction
Since the introduction of the Publican AI system in customs operations at Ghana’s ports, I have closely observed its practical implications on trade activities, particularly at the Aflao border.
While the system was intended to enhance efficiency and revenue mobilization, the realities on the ground are revealing emerging challenges that require urgent attention.
My observations so far point to increasing costs of trade, growing frustration among traders, and potential long-term consequences for both food security and government revenue.
High Valuation: A Persistent Concern
One of the most consistent issues I have observed is the unusually high valuation of goods under the system. Traders frequently indicate that assigned values often exceed actual purchase prices, leading to higher duties and taxes.
This situation has resulted in: increased cost of clearing goods, frequent disputes and delays, and financial strain on traders. For many, particularly small-scale importers, this has made cross-border trade increasingly difficult to sustain.
Direct Impact on Market Prices
The ripple effect of high valuation is clearly visible in the markets. Traders are compelled to pass on the additional costs to consumers, leading to: rising prices of goods,
reduced purchasing power, and slower trading activities.
This trend is gradually reshaping market dynamics and placing pressure on households.
Emerging Food Security Concerns
Of particular concern is the impact on food supply. My observation shows that traders dealing in food commodities are reducing import volumes due to high costs.
This could lead to: limited supply of essential food items, increased food prices, and heightened risk of food insecurity. Such a development poses a serious challenge to national stability and welfare.
Impact on Import Revenue Targets
Another critical issue that cannot be overlooked is the potential effect on government revenue. Customs authorities set annual import revenue targets as part of national fiscal planning. However, the current situation may undermine these targets rather than support them.
From my observation: high valuation is discouraging imports, some traders are reducing shipment volumes,
others are delaying or avoiding formal import channels, and
there is a risk of increased smuggling and informal trade.
In the long run, this could lead to a decline in total import volumes, which directly affects revenue collection. Simply put, when fewer goods are imported through formal channels, the overall revenue base shrinks—even if duties per consignment are higher.
The Struggle of Small-Scale and Women Traders
Small-scale traders, particularly cross-border women traders, are among the hardest hit. With limited capital, they depend on stable and predictable trading conditions.
The current system has: reduced their profit margins,
increased uncertainty, and threatened their survival in the trade sector. This not only affects livelihoods but also undermines inclusive economic participation.
Growing Frustration and Trade Tensions
There is increasing frustration among traders and freight forwarders due to lack of clarity and perceived unfairness in valuation. If not addressed, this could result in:
declining trust in the system, reduced compliance, and
increased tension at border points.
The Need for Immediate Review
While digital innovation in customs is necessary, it must be balanced with practical realities. Based on these observations, there is a need to: review the valuation framework under the Publican AI, engage stakeholders in dialogue, improve transparency in pricing mechanisms, and
introduce measures to protect small-scale traders.
Conclusion
My observations so far suggest that the current implementation of Publican AI, while well-intentioned, is producing unintended economic consequences.
Rising costs, potential food insecurity, and the risk of declining import revenue all point to the need for urgent policy adjustment.
A system designed to increase efficiency and revenue must not inadvertently reduce trade volumes and weaken the very revenue targets it seeks to achieve.
A more balanced and inclusive approach is essential to ensure sustainability.
The writer is a Trade Consultant, Public Relations Practitioner and Coordinator for the National Cross Border Women Traders Association (NCBWTA)