Ghana stands at a critical juncture in its pursuit of economic growth through trade. As one of the world’s largest producers of cocoa, the country should be reaping immense benefits from its agricultural exports.
Yet, cocoa export smuggling—alongside the rampant smuggling of imported goods—continues to rob the nation of revenue, weaken its formal economy, and distort trade policy.
However, within these challenges lie opportunities for reform, growth, and innovation.
The losses from cocoa smuggling are staggering. Farmers, lured by higher prices in neighbouring countries like Côte d’Ivoire and Togo, bypass official channels and sell their cocoa across porous borders.
This undermines the Ghana Cocoa Board (COCOBOD), reduces foreign exchange earnings, and weakens government efforts to stabilize farmer incomes. COCOBOD’s pricing system, while designed to protect farmers, becomes counterproductive when neighbouring markets offer more lucrative rates. The state loses not just revenue, but control over a key export sector.
Simultaneously, import smuggling of goods such as rice, sugar, textiles, and electronics floods Ghanaian markets with untaxed, unregulated products. These goods often avoid high tariffs or import duties, making them cheaper than locally produced or legitimately imported alternatives.
This undercuts local industries, discourages investment, and limits the government’s ability to raise funds for development. For consumers, it may mean access to cheaper goods, but at the cost of national economic resilience.
Yet, these crises also signal areas of untapped opportunity. The smuggling of cocoa signals that farmers are actively seeking better prices and value for their produce. Rather than punishing them, Ghana must create better incentives to retain them within the formal system.
Investing in localized processing, value-addition, and premium pricing for sustainable or organic cocoa can improve incomes while boosting the country’s export value.
On the import side, the government should review and adjust tariff structures to balance revenue generation with affordability and fairness. Excessively high tariffs encourage evasion; smart, competitive rates can reduce smuggling incentives.
Supporting domestic producers through subsidies, innovation, and infrastructure can help Ghanaian industries compete—not just locally, but regionally.
Moreover, technology offers solutions: digital border surveillance, traceable trade platforms, and regional customs cooperation can reduce leakages and improve enforcement.
African Continental Free Trade Area (AfCFTA) also presents a unique opportunity for Ghana to build formal trade corridors that benefit both exporters and importers, while keeping more value within Africa.
In the end, Ghana’s trade losses from smuggling are real, but so are the opportunities to fix them. A mix of policy reform, farmer-centred trade models, smarter taxation, and regional cooperation could transform Ghana’s trade challenges into catalysts for a more inclusive and competitive economy.
The choice is clear: either continue losing billions to informal trade or build a system where trade works for every Ghanaian.
The writer is Professor Evans Akwasi Gyasi, an Associate Professor in International Trade at Anglia Ruskin University, Cambridge, UK. He is also the Co-founder and Director of Trade Growth Network
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