By Nelson Ayivor
The Food and Beverages Association of Ghana (FaBAG) has issued an urgent warning about a widespread smuggling crisis, revealing that Ghana is losing an estimated 300 million cedis in revenue each month from just sugar and rice alone. This illicit trade is severely undermining local industries and depriving the government of tax revenue.
Data shared by FaBAG President, John Awuni, illustrates a shift in trade patterns driven by smuggling. He stated that while Ghana now officially imports 660 containers of sugar per month, a total of 2,200 containers per month are entering through Togo. This figure represents a jump from the 2,000 containers per year that used to come through Togo, indicating an escalating problem.
FaBAG estimates that nationwide, unmonitored smuggling activities are costing Ghana hundreds of millions of cedis every week. This revenue drain threatens economic stability, diminishes investor confidence, and jeopardizes jobs in the manufacturing and distribution sectors.
The association describes the situation as a “double tragedy.” Legitimate businesses grapple with rising operational costs, heavy taxation, and complex port procedures, while smugglers operate freely, flooding the market with untaxed and often substandard goods.
Essential commodities such as rice, cooking oil, sugar, alcoholic beverages, and textiles are being extensively smuggled into the country through both official and unofficial border points. This not only creates an unfair market for compliant businesses but also starves the government of revenue needed for national development.
The current smuggling crisis is not an isolated issue. It reflects a broader, systemic challenge that has affected other key Ghanaian industries, notably the cocoa sector, which accounts for about 15% of the nation’s GDP.
In the 2023-2024 period, over 160,000 tonnes of cocoa, worth approximately £1.28 billion, were smuggled out of Ghana to neighboring countries like Côte d’Ivoire and Togo. This was largely driven by higher prices offered in neighboring countries and sometimes delayed payments to farmers within Ghana.
The government has acknowledged the problem. In September 2024, the Cocoa Board created an anti-smuggling task force which, with military assistance, intercepted 1,400 bags of cocoa and made over 20 arrests. President John Mahama has also suggested new legislation to criminalize the clearing of cocoa farms for mining.
International projects have aimed to help Ghana control its borders. The EU-funded “Strengthening Border Security in Ghana (SBS Ghana)” project, implemented in collaboration with the Ghana Immigration Service, was active until December 2024. Its goals included updating border management systems and enhancing security while respecting human rights.
FaBAG is calling for immediate and decisive action from the government. The association has appealed directly to the Customs Division of the Ghana Revenue Authority, the Ministry of Trade and Industry, and National Security agencies to:
· Intensify enforcement efforts at the borders.
· Deploy advanced surveillance technology.
· Foster stronger collaboration with border communities.
With the Ministry of Finance preparing the 2026 budget statement, FaBAG also urges a thorough review of the import tax regime.
The group identifies high import duties and complex procedures as major drivers of smuggling and states that reform is urgently needed.
According to FaBAG, the issue “transcends economics, it is a matter of national security and survival,” calling for urgent reforms to protect Ghana’s borders, bolster local industries, and secure the future of legitimate businesses.