The Ghana Ports and Harbours Authority (GPHA) has raised concerns that Ghana’s ports could lose significant transit traffic to neighbouring Togo and Côte d’Ivoire due to the continued imposition of Covid-19 tax and VAT on transit cargo.
According to GPHA, the high cost of doing business at Ghana’s ports is pushing Burkina Faso, Mali, and other landlocked countries to explore alternative ports with lower tariffs.
Speaking during a visit by Transport Minister Joseph Bukari Nikpe to the Tema Port, Brigadier General Paul Seidu Tanye-Kulono, Director General of GPHA, emphasized the urgency of 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 historically played a leading role in West and Central African trade and logistics, but that position is now under threat due to unfavourable policies.
Despite frequent appeals from traders and freight forwarders for a tax review, Ghana’s port charges remain higher than those of Togo and Côte d’Ivoire, making them more attractive for businesses.
To better understand how Ghana’s competitors operate, GPHA has sent a fact-finding team to Lomé to study their processes.
“Currently, we have a team in Lomé trying to understand the processes there because we understand they don’t charge these levies. Earlier, they were in Abidjan for the same mission, and after the trip, they will submit a report for policy direction,” Brig. Gen. Tanye-Kulono revealed.
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.
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