The Ghana Ports and Harbours Authority (GPHA) has warned that Ghana risks losing a significant share of its transit trade to Togo and Côte d'Ivoire if the government does not reconsider the imposition of COVID-19 tax and VAT on transit cargo.

The authority says the high cost of doing business at Ghanaian ports is pushing landlocked nations such as Burkina Faso and Mali to seek alternative routes through neighbouring ports that offer more competitive tariffs.

Speaking during a working visit by Transport Minister Joseph Bukari Nikpe to the Tema Port, Brigadier General Paul Seidu Tanye-Kulono, Director General of GPHA, stressed the urgency of reviewing port charges to retain transit trade.

“The transit market is highly competitive, and any disruption can lead customers to shift their business to neighbouring Lomé in Togo and Abidjan in Côte d’Ivoire,” he cautioned.

He urged the government to reconsider VAT and other levies on transit cargo, emphasizing that removing these costs would enhance trade and create more jobs.

Ghana has long been a key transit hub for West and Central Africa, but increasing port charges are making its ports less attractive compared to those in Togo and Côte d'Ivoire.

Despite repeated pleas from traders and freight forwarders for a tax reduction, Ghana’s ports remain more expensive than their competitors. This pricing gap is driving business away from the country’s maritime industry.

In an effort to better understand the competitive advantages of neighbouring ports, GPHA has deployed a fact-finding team to study operations in Lomé and Abidjan.

“Currently, we have a team in Lomé trying to understand the processes there because we understand they don’t charge these levies. Earlier, they were in Abidjan for the same mission, and after the trip, they will submit a report for policy direction,” Brig. Gen. Tanye-Kulono disclosed.

Responding to the concerns, Transport Minister Joseph Bukari Nikpe assured GPHA that the government is committed to keeping Ghana’s ports regionally competitive.

“If goods are not meant for our economy, I’m not sure we have any business charging them. This is a worthy point for us to look at,” he noted.

On the COVID-19 tax, the Minister acknowledged the need for a reassessment, indicating that discussions between the Transport and Finance Ministries would explore possible adjustments.

“It’s important to incorporate the ideas of our partners, especially the landlocked countries that do business with us. If Ghana’s rates are not competitive, they will simply choose ports in Francophone countries,” he warned.

As part of the visit, officials from GPHA and the Transport Ministry toured key sections of Tema Port, including the Shipyard and Terminals 2 and 3, to align government policies with industry needs.

With Ghana facing mounting competition from its regional neighbours, industry experts emphasize that tax reforms and business-friendly policies are crucial to maintaining Ghana’s relevance in the maritime sector and sustaining transit trade.