The Food and Beverages Association of Ghana (FABAG) has issued a strong warning to the government, the Ghana Revenue Authority (GRA), and the Ministry of Trade and Industry, highlighting the alarming and unchecked rise of smuggling activities in the country’s rice and sugar markets.
According to the executive chairman of FABAg, Rev. John Awuni, legitimate importers and local producers are being pushed to the brink of collapse as massive volumes of untaxed rice and sugar flood the Ghanaian market. This illicit trade primarily flows through unapproved border routes, particularly at critical entry points like Aflao (Togo) and Elubo (Ivory Coast).
“The core of the problem is the significant duty differential between Ghana and its neighbours, which fuels this illegal trade through Aflao and Elubo. If this negligence continues, the formal food sector and local rice production will collapse. The government’s silence is tantamount to complicity. We need a fair review of tariffs and modern digital monitoring to secure our economy and our nation’s future”, Awuni said.
FABAG states that the primary driver of smuggling is the significant duty differential between Ghana and its neighbouring countries, which provides strong financial incentives for traders to evade official channels.
The association noted this illegal activity not only cripples fair competition for honest Ghanaian enterprises but also deprives the State of millions of cedis in vital import duties and taxes.
“Smuggling has virtually taken over the rice and sugar market, pushing legitimate businesses to the brink. This is not just unfair competition; it is economic sabotage. While we pay our taxes and create jobs, the State is losing millions of cedis daily because of negligence. We demand immediate action: Government must send in a nationwide task force now to dismantle these cartels.”
To combat what it calls “economic sabotage,” FABAG is urgently calling for the immediate implementation of concrete measures:
- Nationwide Task Force: Immediate action led by the GRA Customs Division to clamp down on the smuggling networks.
- Border Management Overhaul: Deployment of digital monitoring systems at key border points to track the movement of rice and sugar consignments.
- Accountability and Transparency: Public disclosure of enforcement results to demonstrate effective accountability.
- Agency Collaboration: Stronger collaboration between the Ministry of Trade, National Security, and Border Patrol Units to dismantle smuggling cartels.
- Tax Review: A fair review and adjustment of import taxes and tariffs to promote compliance and create a level playing field.
FABAG is resolute in its commitment to continue working with stakeholders to ensure a fair, transparent, and accountable trade environment that safeguards national revenue, supports the local economy, and protects consumer safety. The association stresses that the time for decisive leadership to protect Ghana’s economy is now.
Source: 3news.com
