Ghana’s economy is reportedly losing billions of cedis due to widespread smuggling, prompting a strong warning from the Food and Beverages Association of Ghana (FABAG) about a potential collapse of the manufacturing and distribution sectors if immediate action is not taken.
According to the association, criminal syndicates are flourishing across the borders while law-abiding businesses continue to suffer under the weight of excessive taxes, mounting operational costs, and limited government support.
FABAG says the illicit trade has reached an alarming scale, with intelligence from border communities and industry players confirming that large quantities of goods such as rice, sugar, cooking oil, textiles, and alcoholic beverages are being smuggled into the country daily.
The association laments that this unchecked influx of untaxed and substandard goods is crippling local industries and draining government revenue that could otherwise fund critical development projects.
“It is deeply troubling that compliant businesses are subjected to strict taxation while smugglers operate freely,” FABAG said in a statement. “This imbalance discourages investment and places legitimate enterprises at a severe disadvantage.”
The group estimates that Ghana is losing hundreds of millions of cedis every week through porous borders and unregulated entry points. It warns that the continuous revenue leakage is weakening the cedi, discouraging foreign investment, and threatening thousands of jobs in the food, beverage, and manufacturing sectors.
FABAG is urging the Customs Division of the Ghana Revenue Authority, the Ministry of Trade and Industry, and national security agencies to step up enforcement efforts by tightening border control and deploying modern surveillance systems to detect and disrupt smuggling networks.
The association describes the current smuggling operations as highly sophisticated and well-funded, requiring a coordinated national response.
Additionally, FABAG is appealing to the Ministry of Finance to review Ghana’s import tax regime in the upcoming 2026 Budget, stressing that the current high import duties and cumbersome port processes have become key incentives for smuggling.
The group argues that while citizens and businesses are being burdened with higher tariffs and taxes, the state continues to lose massive revenue through illegal trade.
FABAG insists that smuggling has evolved into a national security threat capable of undermining Ghana’s industrial growth and long-term economic stability.
“The government cannot afford further delays,” the statement emphasized. “We must act urgently to safeguard our borders, protect local industries, and secure the economic future of our country before it’s too late.”
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