Editorial: Is the country losing vital port traffic?

Without smarter fiscal strategies, the country risks losing vital port traffic to neighbouring competitors.

From 2017 to 2021, Ghana’s ports thrived on tax relief measures such as the Benchmark Value Discount Policy (BVDP) and import duty exemptions which helped boost cargo throughput, particularly during economic uncertainty under the COVID-19 pandemic.

Subsequent abolition of the BVDP and increase in Value Added Tax (VAT) between 2022 and 2023 reversed these gains, leading to a significant drop in import traffic – which accounts for 66% of total port throughput.

However, neighbouring countries like Togo and Côte d’Ivoire are aggressively expanding their port infrastructure and offering more attractive tariff regimes – drawing business away from Ghana and prompting urgent calls for strategic policy revisions to preserve the country’s competitiveness and economic resilience.

A research report put together by the Centre for Applied Research and Innovation in Supply Chain-Africa (CARISCA) believes Ghana must review and reduce port fees and taxes, particularly for transit goods.

Ghana’s ports, particularly Tema and Takoradi, are crucial to the nation’s economy – serving both domestic needs and neighbouring landlocked countries.

The report advised policymakers to reconsider tax relief measures, introduce competitive port tariffs and streamline port processes to reduce hidden costs as well as the country’s ability to maintain its position as a regional trade hub, which centres on urgent reforms to its tax and trade policies.

Targetted tax revisions, infrastructure upgrades and more efficient port management are key to restoring Ghana’s competitiveness in the West African maritime sector.

In fact, it calls for a return to the BVDP or introduction of a similar tax relief mechanism to help revive import volumes and re-establish Ghana’s ports as attractive entry points for global trade.

To reduce overreliance on import taxes, the report recommends expanding exports, supporting industrial free zones and investing in value-added services like logistics, warehousing and re-export hubs.

The report also emphasises the importance of stronger Customs enforcement through technologies like blockchain and Artificial Intelligence (AI) to reduce smuggling and underreporting, thereby stabilising revenue without burdening legitimate trade.

Strategic revisions to existing tax regimes, along with infrastructural improvements and streamlined port operations, will help Ghana regain its standing as a key transit hub in West Africa.

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