The Ghana Ports and Harbours Authority (GPHA) has expressed concerns that Ghana’s ports may lose significant transit traffic to neighboring Togo and Côte d’Ivoire. This situation is primarily due to the ongoing imposition of Covid-19 taxes and VAT on transit cargo. GPHA indicates that the high cost of doing business at Ghana’s ports is prompting landlocked countries like Burkina Faso and Mali to consider alternative ports with lower tariffs. During a recent visit by Transport Minister Joseph Bukari Nikpe to the Tema Port, Brigadier General Paul Seidu Tanye-Kulono, Director General of GPHA, stressed the urgent need for government intervention.
“The transit market is highly competitive, and any disruption can lead customers to shift their business to neighbouring Lomé in Togo and Abidjan in Côte d’Ivoire,” he warned. He urged the government to reconsider its decision on VAT and other levies, stating that removing these taxes would encourage trade and create employment opportunities.
Ghana’s Competitive Edge at Risk
Ghana has traditionally held a prominent position in West and Central African trade and logistics; however, this status is now threatened by unfavourable policies. Despite repeated requests from traders and freight forwarders for a review of the tax system, Ghana’s port charges remain higher than those in Togo and Côte d’Ivoire, making those countries more appealing for businesses.
To gain insight into how its competitors operate, the Ghana Ports and Harbours Authority (GPHA) has dispatched a fact-finding team to Lomé to study their processes. “Currently, we have a team in Lomé trying to understand their processes because we recognize that they do not impose these levies. Earlier, they visited Abidjan for the same purpose, and they will submit a report to guide our policy direction after completing their trips,” explained Brig. Gen. Tanye-Kulono.
Government Considering Policy Review
Transport Minister Joseph Bukari Nikpe assured the GPHA of the government’s commitment to keeping Ghana’s ports competitive.
“If goods are not meant for our economy, I’m not sure we have any business charging them. This is a worthy point for us to look at,” he stated.
On the Covid-19 tax, the Minister acknowledged the need for a review, adding that discussions between the Transport and Finance Ministries would explore possible adjustments. “It’s important to incorporate the ideas of our partners, especially the landlocked countries that do business with us. If Ghana’s rates are not competitive, they will simply choose ports in Francophone countries,” he cautioned.
During the visit, officials from GPHA and the Transport Ministry toured key areas of the Tema Port, including the Shipyard and Terminals 2 and 3, as part of efforts to align government policy with the needs of the maritime industry.
Way Forward
With Ghana facing intensified regional competition, stakeholders stress that tax reforms and business-friendly policies are crucial to safeguard transit trade and sustain Ghana’s role as a maritime hub.
By: Kwame Yankah
