JoyNews investigations have revealed how some Chinese-owned companies sold millions of kilograms of washing detergents on the Ghanaian market without certification from the Ghana Standards Authority (GSA).
In 2022, the Ghana Free Zones Authority (GFZA) granted tax incentives to Ghana Sino Border Industrial Company to manufacture detergents for export. However, the company ended up selling a significant volume of its products locally, contrary to the conditions of the agreement.
Documents show that in September 2022, the GFZA Board approved the company’s application to produce washing powder and diapers strictly for export. Under the Free Zones Act, companies approved for such purposes benefit from sweeping incentives—100% exemptions from import duties, income tax holidays, and relief from withholding taxes and double taxation.
According to Tax Policy Analyst Benaiah Nii Addo, the Free Zones policy was designed to drive industrialisation, stimulate economic growth, and facilitate skills and technology transfer to Ghanaian workers. “It was never meant to give foreign companies an unfair edge over local manufacturers,” he noted.
But JoyNews checks show that Ghana Sino Border Industrial Company did not export all its detergent. In 2023, the company imported 6,045,448 kilogrammes of detergent and exported only 4,021,254 kilogrammes, valued at $2.5 million. The remaining 2,023,600 kilogrammes ended up on the Ghanaian market.
This breach of agreement not only violates Free Zones provisions but also means the company enjoyed tax exemptions on goods sold locally. In 2024, the company imported 4,719,198 kilogrammes and, as of January 14, exported just 792,815 kilogrammes.
Market surveys by JoyNews found the company’s detergent brand, Netax, selling at GH¢15, while locally produced alternatives went for GH¢35. Industry players say this unfair pricing is driving local firms out of business.
Chairman of the Association of Ghana Industries (Greater Accra Region), Tsonam Akpeloo, blamed legal loopholes in the Free Zones regime. “It gives foreign companies an undue advantage over local producers who must pay full taxes and comply with all standards,” he said.
Further checks at the GSA reveal that while the Free Zones Authority approved the company to produce detergents for export in 2022, Ghana Sino Border Limited did not receive GSA certification to sell its Netax and Nice One brands locally until 2024. This suggests the 2 million kilogrammes sold locally in 2023 were unlicensed and unregulated.
The company’s earlier certifications in 2020, 2021, and 2022 were for plastic products, packaging, and textiles, not detergents.
When contacted by JoyNews, the company declined an interview, stating they required clearance from their superiors in China. However, they admitted to selling some products locally, claiming the Free Zones Act permits up to 30% local sales. They also insisted they had GSA certificates dated June 30, 2022, expiring in June 2023. According to their manufacturing manager, “We cannot produce—let alone export—without GSA certification.”
Meanwhile, a second Chinese-owned detergent producer, Meiji Ghana Limited, which is not registered under the Free Zones scheme, also appears to have engaged in illegal local sales.
In 2023, Meiji Ghana imported 9,450,079 kilogrammes of detergent and exported none. In 2024, it imported 6,377,344 kilograms and exported just 216,844 kilogrammes, valued at $218,822.
The GSA confirmed that Meiji Ghana Limited is not certified to sell on the local market, suggesting its products are also being sold illegally. AGI’s Tsonam Akpeloo believes it is time for the government to clamp down on such practices.
Though the exact tax revenue lost is unclear, the Ghana Revenue Authority (GRA) has confirmed receiving a petition from JoyNews for a tax audit of the two firms. Sources at the GRA say the audit process has begun.
While the Free Zones law was designed to attract foreign investment, the current abuse of its provisions may be draining critical revenue at a time when many communities lack basic amenities.
One such community is Chorkor in Accra. Residents here struggle with access to public toilets. For some, paying GH¢1 to use a facility is too costly, leading to widespread open defecation along the beaches.
“Allotey Pappoe,” a mobile money vendor, says the GH¢1 fee cuts deeply into his daily earnings. Yet, for others like the Chief Fisherman, Lantey Wulo, the greater concern is the health risk. “I have begged people to stop, but no one listens,” he lamented.
The open defecation issue, now a global health concern, has affected Ghana significantly. According to the European Centre for Disease Prevention and Control, Ghana recorded 1,240 new cholera cases and nine deaths between October 18 and November 18, 2024.
Local Assembly Member Theophilus Quaye has been campaigning for better sanitation in Chorkor. But with no new toilets being built, hopes for improved hygiene remain a distant dream.
Efforts to get a response from Meiji Ghana Limited proved unsuccessful.
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This investigation was supported by the Thomson Reuters Foundation as part of its global efforts to strengthen free, fair, and informed societies. The views expressed are solely those of the author and are not influenced or endorsed by the Foundation or its affiliates.
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