The Food and Beverages Association of Ghana (FABAG) has sounded an alarm over the growing smuggling crisis, blaming high import duties for fueling illicit trade and draining the economy of billions of cedis monthly.
In a statement released on October 27, FABAG said smugglers are reaping huge profits while government loses vital tax revenue.
The Association described the situation as “a double tragedy” in which “honest traders are being unfairly penalised while criminal networks prosper.”
According to FABAG, recent intelligence from partners and border communities shows a sharp rise in the smuggling of rice, cooking oil, sugar, alcoholic beverages, and textiles.
These goods, it said, enter Ghana untaxed, often of substandard quality, undermining local industries and eroding investor confidence.
“FABAG estimates that Ghana is losing hundreds of millions of cedis every week due to unmonitored smuggling activities at both official and unofficial entry points,” the statement said.
The group warned that the unchecked situation threatens economic stability, weakens the cedi, and puts jobs at risk in the manufacturing and distribution sectors.
FABAG called on the Ministry of Finance, the Ghana Revenue Authority, the Ministry of Trade and Industry, and the National Security agencies to intensify enforcement at the borders.
It urged the deployment of surveillance technology and closer collaboration with local communities to stop the trade.
“The government cannot afford to continue losing such significant revenue while burdening ordinary Ghanaians and businesses with additional electricity and water tariffs,” the statement said.
FABAG noted that smuggling has become “a highly organised, well-funded network” that could collapse Ghana’s industrial base if not tackled swiftly.
As the Finance Minister prepares to present the 2026 Budget, FABAG demanded a full overhaul of the import tax regime, describing high duties and complex port procedures as major drivers of smuggling.
“This issue transcends economics—it is a matter of national security and survival,” FABAG warned, calling for urgent reforms to protect Ghana’s borders, sustain local industries, and preserve jobs.
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