FABAG Blames Rising Smuggling on High Import Duties.
Executive Chairman of FABAG, John Awuni- Photo credit FABAG
The Food and Beverages Association of Ghana (FABAG) has expressed concern over the recent surge in smuggling across the country, attributing the trend to high import duties that continue to burden legitimate traders.
In a statement issued on October 27, the Association said the situation is depriving the state of significant tax revenue while allowing illegal operators to thrive. FABAG described the development as a “double tragedy,” noting that honest businesses are being pushed out of competition while criminal networks profit from tax evasion.
The group revealed that intelligence gathered from partner organizations and border communities points to a sharp increase in the smuggling of rice, cooking oil, sugar, alcoholic beverages, and textiles into the country. These products, often of low quality and untaxed, not only weaken the local manufacturing sector but also discourage investment and confidence in the Ghanaian Market. FABAG estimates that Ghana loses hundreds of millions of cedis weekly through unregulated smuggling at both official and illegal entry points.
The Association cautioned that the unchecked situation poses risks to economic stability, the value of the cedi, and employment within the food and beverage supply chain.
They have therefore called on the Ministry of Finance, the Ghana Revenue Authority (GRA), the Ministry of Trade and Industry, and National Security agencies to strengthen border monitoring and intensify enforcement efforts to curb the crisis.
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