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The Importers and Exporters Association of Ghana has raised serious concerns over a directive by the Ministry of Finance to enforce mandatory local cargo insurance for all commercial imports, effective February 1, 2026.
The Association says the policy was announced without prior engagement with key stakeholders who will bear its full cost and operational impact. According to the IEAG, the sudden nature of the directive has unsettled importers and exporters and created uncertainty across the trading community.
In a statement signed by Mr Samson Asaki Awingobit, Executive Secretary of the Association, the IEAG noted that the directive instructs the Ghana Revenue Authority and the Bank of Ghana to enforce Section 222 of the Insurance Act, 2021 (Act 1061). While the Association acknowledged the government’s intention to strengthen the local insurance industry and retain premiums within the domestic economy, it stressed that the manner of implementation raises fundamental concerns.
Lack of Stakeholder Consultation Raises Alarm
A major issue highlighted by the IEAG is the absence of consultation prior to the announcement of the policy. The Association stated that neither the Ministry of Finance, the Ghana Revenue Authority nor the Bank of Ghana engaged importers and exporters to discuss the structure, scope or implementation of the mandatory insurance requirement.
It added that it had not been consulted or sensitised on critical issues such as premium determination, coverage terms, claims settlement procedures and the capacity of local insurers to underwrite high value cargo.
The IEAG described it as alarming that importers were learning about a policy of such magnitude through a public announcement, less than a month before its intended commencement. From the perspective of businesses that depend on predictable trade rules, this approach undermines planning and heightens operational risk.
Capacity of Local Insurers Under Scrutiny
The Association further raised concerns about whether local insurance companies have the financial strength and reinsurance capacity to underwrite large volume and high risk cargo. According to the IEAG, unresolved gaps remain regarding the ability of domestic insurers to handle complex and high value shipments without exposing importers to delayed or unpaid claims.
Equally troubling is the lack of clarity on claims processing timelines and safeguards against prolonged disputes and bureaucratic delays. The IEAG warned that without clear and transparent mechanisms, importers could face significant financial losses in the event of claims, thereby eroding confidence in the proposed framework.
Conflict With Global Trade Practices
On international trade norms, the IEAG observed that most imports into Ghana are insured under internationally recognised Incoterms and long standing global insurance arrangements. These frameworks are often embedded in contracts with foreign suppliers, financiers and shipping partners.
The Association cautioned that the abrupt imposition of a local insurance requirement, without clear transition measures, could lead to contractual conflicts and legal complications.
Such conflicts, the IEAG warned, could disrupt supply chains and strain relationships with international partners, potentially making Ghana a less attractive destination for trade and investment.
Inflation and Cost of Doing Business Concerns
The Association also flagged the potential inflationary impact of the policy. It warned that without transparency in pricing, mandatory local cargo insurance could increase the cost of doing business. These additional costs, it noted, are likely to be passed on to consumers, thereby worsening inflationary pressures at a time when businesses and households are already grappling with high costs.
For import dependent sectors, higher insurance premiums could translate into higher prices for goods, with knock on effects across the economy.
The timing of the directive has further heightened concern within the trading community. The IEAG noted that importers are already preparing for the rollout of the Ghana Revenue Authority’s Publican AI related systems and other digital trade facilitation reforms scheduled for February 1, 2026. Introducing another major compliance requirement at the same time, without adequate engagement or education, could create uncertainty and operational bottlenecks at the ports.
According to the Association, the convergence of multiple reforms without proper coordination increases the risk of delays, compliance errors and disruptions to cargo clearance processes.
Call for Suspension and Inclusive Engagement
The IEAG reminded the government that policy decisions taken without broad stakeholder consultation have, in the past, resulted in public dissatisfaction and economic disruption. It argued that if the President John Dramani Mahama led government is committed to its resetting agenda, policies of this scale should be developed in a holistic, transparent and inclusive manner.
The Association has therefore called on the Ministry of Finance, the Ghana Revenue Authority, the Bank of Ghana and the National Insurance Commission to suspend the implementation timeline and urgently engage industry stakeholders in meaningful consultations before enforcement begins.
Despite its concerns, the IEAG reaffirmed its commitment to constructive engagement with government. It expressed readiness to work collaboratively to develop solutions that protect national interests while avoiding disruption to trade or erosion of business confidence. The Association urged authorities to ensure that policies are well discussed, properly phased and aligned with industry realities to achieve sustainable national objectives.
