Importers are raising serious concerns that smugglers have taken over Ghana’s rice and sugar market, a situation they say has been made possible by the government’s failure to act decisively.
According to the Food and Beverages Association of Ghana (FABAG), illegal entry of goods has surged to alarming levels, crippling legitimate businesses and stripping the state of critical revenue.
FABAG reveals that the crisis has been escalating for months, with large quantities of rice and sugar entering Ghana through unofficial routes. The Association highlights Aflao and Elubo as two major hotspots where smuggling has intensified beyond control.
Legal Importers Under Threat
The Association warns that the influx of smuggled goods has “virtually taken over the rice and sugar market,” pushing compliant importers to the edge of collapse. Despite paying taxes, following regulations, and creating jobs, legal businesses are losing out to illegal operators who bypass the system entirely.
According to FABAG, government revenue losses have ballooned into millions of cedis. The group blames weak enforcement and bureaucratic delays, calling them long-standing loopholes that smugglers continue to exploit.
It also accuses authorities of turning a blind eye, saying repeated warnings have been ignored—an approach FABAG describes as “negligence” that has emboldened smuggling networks.
Why Smuggling Is Growing
FABAG identifies the sharp difference in import duties between Ghana and neighbouring countries as a major driver of the problem. The “significant duty differential,” it says, motivates traders to evade official channels and resort to smuggling for higher profit margins.
FABAG’s Demands for Urgent Action
To reverse the trend, FABAG is calling for immediate, coordinated intervention. Its recommendations include:
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Establishing a nationwide task force to target smuggling rings
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Revamping border operations to seal loopholes
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Deploying digital surveillance systems at major entry points
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Publicly reporting enforcement outcomes to ensure transparency
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Collaborative action between Trade authorities, National Security, and Border Patrol
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Reviewing taxes and tariffs to make legal importation more competitive
FABAG labels the widespread smuggling as “economic sabotage,” stressing that prolonged inaction will collapse the formal import sector and hurt local rice producers.
A Call for Leadership
The Association warns that Ghana stands to lose significant revenue while the agriculture sector takes a heavy blow if the current situation persists. It insists that only strong, transparent enforcement can safeguard the economy.
FABAG is urging the government to take immediate leadership to protect public health, state revenue, and the country’s long-term economic stability. The group says it will continue to advocate for a fair and accountable trading environment alongside industry stakeholders.
