The Food and Beverages Association of Ghana (FABAG) has thrown its support behind the government’s decision to ban the movement of selected transit goods into Ghana through land borders.

In a statement, the association said the directive will help safeguard local manufacturers while improving government revenue mobilisation.

“The Food and Beverages Association of Ghana (FABAG) strongly commend the Ministry of Finance and especially the Hon Minister of Finance, Dr Forson, for the decisive directive banning the movement of selected transit goods into Ghana by land and requiring such goods to enter the country through the nation’s seaports.”

The directive affects transit goods including rice, sugar, flour, textiles, spaghetti and tomato paste. Under the policy, such goods must now enter Ghana through the country’s seaports.

FABAG described the measure as a bold intervention to address long-standing challenges within the country’s trade environment.

“This decisive directive… represents a bold and timely intervention aimed at addressing the persistent challenges of smuggling, revenue losses and misclassification of goods that have plagued Ghana’s trade environment for many years.”

According to the association, the move shows the government’s commitment to strengthening trade regulation and protecting legitimate businesses.

“The Food and Beverages Association of Ghana (FABAG) believes that this policy decision demonstrates the government’s commitment to strengthening trade regulation, safeguarding government revenue, and protecting legitimate businesses operating within the country.”

FABAG noted that Ghana has, for years, suffered revenue losses due to the abuse of the transit trade regime.

“For a long time, Ghana has lost substantial revenue due to the widespread abuse of the transit regime.”

The association said some traders declare goods as transit cargo destined for neighbouring countries, only to divert them illegally into the Ghanaian market through land borders without paying the required duties and taxes.

“This practice has not only deprived the State of significant revenue but has also created an uneven playing field for legitimate manufacturers, importers, and distributors who comply with Ghana’s tax and regulatory requirements.”

FABAG believes the new directive will help improve monitoring and inspection processes.

“Requiring these goods to enter Ghana through the country’s seaports will significantly improve monitoring, inspection, and documentation processes, thereby helping to reduce the risk of diversion and smuggling.”

The association has therefore called on key state agencies to ensure strict enforcement of the directive.

“The Food and Beverages Association of Ghana therefore strongly urges all relevant state institutions, particularly the Ghana Revenue Authority, the Ghana Customs Division, and other border regulatory agencies, to ensure strict and uncompromising enforcement of this directive.”

FABAG also urged government to expand the list of goods covered by the directive.

“FABAG further advises government to consider extending the directive to cover additional goods, including fruit juices and other similar products.”

The association warned that some traders may attempt to evade the policy by misclassifying goods.

“There is a strong likelihood that some unscrupulous traders may attempt to circumvent the directive by deliberately misclassifying restricted products under other categories in order to evade the new controls.”

FABAG said expanding the list will help close potential loopholes and ensure the policy achieves its intended objectives.

It added that smuggling and deliberate misclassification of goods have long undermined Ghana’s economy.

“These illegal practices undermine government revenue mobilisation efforts, distort fair competition, and threaten the survival of compliant businesses within the formal sector.”

FABAG said the directive marks an important step toward restoring discipline and transparency within the country’s trade system.

“The Food and Beverages Association believes that the directive by the Minister for Finance is an important step toward restoring discipline, transparency, and accountability within Ghana’s trade and customs systems.”