The Importers and Exporters Association of Ghana (IEAG) has raised serious concerns over a directive mandating local cargo insurance for all commercial imports, warning that the policy was announced without stakeholder engagement and could disrupt trade if implemented as planned.

In a statement signed by its Executive Secretary, Samson Asaki Awingobit, the Association said it was troubled by the Ministry of Finance’s directive to the Ghana Revenue Authority (GRA) and the Bank of Ghana (BoG) to enforce mandatory local cargo insurance from February 1, 2026, in line with Section 222 of the Insurance Act, 2021 (Act 1061).

While acknowledging the government’s objective of strengthening the local insurance industry and retaining premiums within the domestic economy, the IEAG said the absence of consultation with importers and exporters, who will bear the full cost of the policy, raises serious concerns about its structure, implications and implementation.

According to the Association, neither the Ministry of Finance, the GRA nor the BoG engaged importers and exporters ahead of the announcement to clarify how the policy would work in practice.

It said members have not been sensitised on how premiums will be determined, the scope of coverage, claims settlement procedures, or whether local insurers have the capacity to underwrite high-value and specialised cargo.

The IEAG said it was particularly alarming that importers were learning through a public announcement that a policy of such scale is expected to take effect in less than a month.

From the perspective of importers and exporters, the Association identified several unresolved gaps, including concerns about the financial capacity and reinsurance backing of local insurers to handle large-volume and high-risk international cargo without exposing businesses to delayed or unpaid claims.

It also raised questions about claims settlement and dispute resolution mechanisms, noting the lack of clarity on timelines, safeguards and protections against prolonged bureaucratic delays.

The Association further warned that the directive could conflict with established global trade practices, as most imports into Ghana are insured under internationally recognised Incoterms and long-standing insurance arrangements.

It said imposing a local insurance requirement without clear transition measures risks contractual disputes with foreign suppliers, financiers and shipping partners.

On cost implications, the IEAG cautioned that without transparency on pricing, the policy could significantly increase the cost of doing business, with the likelihood that additional costs would be passed on to consumers, worsening inflationary pressures.

The Association also noted that importers are already preparing for the rollout of new digital trade facilitation reforms by the GRA, including Publican AI–related systems, also scheduled for February 1, 2026. Introducing another major compliance requirement at the same time, it said, could create confusion, uncertainty and operational risks at the ports.

The IEAG reminded government that policy decisions taken without broad stakeholder consultation have previously resulted in public dissatisfaction and economic disruption.

It urged the John Mahama–led administration and the Ministry of Finance, under Dr Cassiel Ato Forson, to ensure that policies aligned with the government’s resetting agenda are developed transparently and inclusively.

The Association has therefore called on the Ministry of Finance, the GRA, the BoG and the National Insurance Commission to pause the implementation timeline and urgently engage industry stakeholders in meaningful consultations before enforcement begins.

The IEAG said it remains committed to constructive engagement and stands ready to work with the government to develop solutions that protect national interests without undermining trade facilitation or unfairly burdening importers.