Sharp decline in port container traffic exposes rising smuggling crisis

A steep drop in container traffic through Ghana’s ports has flagged concern over an increase trend of smuggling across the country’s borders. This, according to the Food and Beverages Association of Ghana (FABAG), is causing the nation to lose billions of cedis each month to illicit trade.

Data from Mr. John Awuni, Executive Chairman-FABAG, show that containers arriving through Port Tema  have dropped from an average 2,000 containers per month to about 1,000 in recent times – indicating a 50 percent reduction

Meanwhile, he said volumes of container at Togo’s ports have increased – indicating that importers are rerouting goods through neighbouring countries and smuggling them into Ghana to avoid duties and taxes.

“Smuggling all manner of goods across the borders of Ghana has reached alarming levels. Daily, different kinds of goods are being smuggled through the Ivorian and Togo borders into the country,” he said to B&FT.

This current trend has reached a crisis proportion and he stressed that government is significantly losing money to illicit smuggling – while legitimate businesses struggle.

Mr. Awuni emphasised that the situation has left most companies complaining due to their inability to compete, since smuggled goods are untaxed and therefore sold at prices below market value – hence they are calling on government to act immediately.

Managing Director – Coca-Cola, Mr. Felix Gomis, made a courtesy call on the Ghana Revenue Authority in April 2025 and drew their attention to the fact that over                     US$700,000 – which is about 150,000 crates of Coca-Cola – is smuggled from Nigeria into Ghana per month.

This illicit activity, according to Mr. Gomis, is negatively impacting Ghana’s economy, local businesses and communities.

In finding solutions, Acting Commissioner-General, Ghana Revenue Authority, Anthony Sarpong during the courtesy call noted that the Authority is putting in place measures to clamp down on smuggling of products from neighbouring ECOWAS countries.

According to him, the ramifications of smuggling not only disrupt the economy but also contributes to fluctuating prices, undermines local businesses and erodes public trust in regulatory systems.

FABAG further warned that the crisis is at a “turning point” while estimating that the country loses hundreds of millions of cedis every week through unmonitored smuggling at both official and unapproved entry points.

Ghana’s Port Tema  processed about 1.67 million containers in 2024, generating an estimated US$10billion in potential Customs revenue, according to the Ghana Ports and Habour Authority (GPHA) 2024 performance summary.

However, if FABAG says that the country is losing “hundreds of millions of cedis every week” to smuggling, then it suggests a notable portion of port-related trade may be evading proper taxation which amounts to several billions of cedis annually or over 300,000 containers worth of revenue lost to smuggling.

The association further revealed that recent intelligence from their partners in border communities and industry stakeholders have identified essential commodities such as rice, cooking oil, sugar, alcoholic beverages and textiles as being extensively smuggled into the country.

“This illicit trade not only undermines local industries but also deprives government of vital tax revenue, hampering national development,” the Executive Director bemoaned.

Recent data from the Ministry of Finance in July 2025 also cement FABAG’s concern. The data disclosed that Ghana recorded a Customs revenue deficit of GH¢1.6billion in first-half of the year.

This shortfall was attributed to under-declaration, misclassification of imports and smuggling, while a task force also revealed that the loss of goods routed through neighbouring ports is contributing to the current growing fiscal gap.

FABAG has called on the Ministry of Finance, Customs Division of the Ghana Revenue Authority, Trade and Industry Ministry and National Security agencies to strengthen enforcement and inject capital into surveillance technology – while working closely with border communities to close smuggling routes

Speaking on reasons behind the current smuggling trajectory, Mr. Awuni blamed high import duties and cumbersome port procedures and appealed to government for a comprehensive review of Ghana’s import tax regime during the 2026 Budget reading.

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