The Food and Beverages Association of Ghana (FABAG) says the government’s decision to ban selected transit goods from entering the country by land could significantly boost state revenue and protect local industries.

In a statement, the association commended the Ministry of Finance and Finance Minister Dr Cassiel Ato Forson for issuing the directive requiring certain transit goods to enter Ghana through seaports rather than land borders.

According to FABAG, the policy represents a bold intervention to tackle long-standing challenges in Ghana’s trade system.

“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 goods such as rice, sugar, flour, textiles, spaghetti and tomato paste.

FABAG said the move addresses persistent problems of smuggling, revenue losses and the misclassification of goods.

“This decisive directive, which affects transit goods such as rice, sugar, flour, textiles, spaghetti and tomato paste, 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.”

The association believes the decision demonstrates the government’s commitment to stronger trade regulation and revenue protection.

“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 lost substantial revenue over the years due to abuse of the transit trade system.

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

According to the association, some traders declare goods as transit cargo destined for neighbouring countries but later divert them into the Ghanaian market without paying the required duties.

“Unscrupulous traders have taken advantage of the system by declaring goods as transit cargo destined for neighbouring countries, only for such goods to be illegally diverted into the Ghanaian market through the land borders without the payment of the appropriate duties and taxes.”

FABAG said this practice has deprived the state of revenue and created unfair competition for legitimate businesses.

“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.”

The association explained that routing the affected goods through seaports will improve monitoring and inspections.

“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.”

FABAG also called on key state institutions to strictly enforce 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.”

It further urged the government to expand the list of restricted transit goods to prevent possible loopholes.

“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 bypass the policy by deliberately misclassifying.

“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 believes expanding the list will help ensure the policy achieves its objectives.

“Expanding the scope of the directive will therefore close potential loopholes and ensure that the intended objectives of the policy are fully realised.”

The association described the policy as a crucial step toward restoring discipline and transparency in Ghana’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.”