The Importers and Exporters Association of Ghana (IEAG) has issued a stark warning about the detrimental impact of what it terms politically connected cartels manipulating the auctioning of perishable goods at Ghana’s ports. These cartels, according to the IEAG, are exploiting vulnerabilities in the system, particularly the challenges importers face in accessing foreign exchange, to acquire goods at significantly reduced prices, crippling legitimate businesses and eroding investor confidence. The Association argues that this practice is not only damaging to individual businesses but also deprives the state of crucial revenue at a time of economic hardship.
The IEAG’s central accusation revolves around the manipulation of the Uncleared Cargo List (UCL) process. Legally, goods listed on the UCL are granted a 60-day grace period before being auctioned. However, the Association alleges that this period has been arbitrarily shortened to just 21 days, creating an opportunity for these cartels to swoop in and acquire goods prematurely. This accelerated timeline, coupled with what the IEAG describes as a lack of transparency and due process in the auctioning procedures, effectively allows these well-connected individuals to circumvent established regulations and acquire goods at prices far below market value, generating substantial profits at the expense of legitimate importers.
The situation is further exacerbated by Ghana’s ongoing foreign exchange crisis. Importers struggle to secure the necessary dollars to clear their shipments within the truncated 21-day window, leaving their goods vulnerable to seizure and subsequent auction. This creates a vicious cycle where the very crisis contributing to the delay also facilitates the exploitation of importers by these cartels. The IEAG contends that the combination of the shortened grace period and the forex shortage creates a perfect storm for these politically connected individuals to profit unfairly.
The IEAG highlights the gross inequity of the system, pointing out that while importers lose their goods and incur substantial demurrage charges, the beneficiaries of these manipulated auctions secure shipments for a nominal fee, typically ranging between GH₵6,000 and GH₵10,000. This stark contrast underscores the exploitative nature of the practice and the significant financial losses borne by legitimate businesses. The Association emphasizes that this system not only robs importers of their investments but also deprives the Ghanaian government of much-needed revenue, exacerbating the country’s economic challenges.
In response to this perceived crisis, the IEAG is demanding immediate intervention and comprehensive reforms. Key among these demands is the restoration of the original 60-day grace period for goods listed on the UCL, providing importers with sufficient time to navigate the complexities of forex acquisition and clear their shipments. The Association also advocates for a one-time clearance option specifically designed to assist importers grappling with forex shortages, offering a pathway to retrieve their goods without incurring punitive penalties. Furthermore, the IEAG calls for a thorough investigation by the Customs Division and national security agencies into the alleged “political cabal” operating within the system, emphasizing the need for transparency and accountability.
The IEAG has also called upon the Bank of Ghana to play a more proactive role in addressing the forex challenges faced by importers. The Association urges the central bank to exert pressure on commercial banks to enhance access to foreign exchange at fair and competitive rates, facilitating smoother transactions and reducing the vulnerability of importers to exploitation. The IEAG stresses the urgency of these reforms, warning that a failure to address the situation decisively could lead to mass action by its members and the wider trading community, signaling the potential for significant disruption to the country’s import and export sector. The Association’s strong stance underscores the gravity of the situation and the urgent need for government intervention to protect legitimate businesses and ensure the integrity of the port auctioning system.
