The Food and Beverages Association of Ghana (FABAG) has issued a strongly worded appeal to the Government of Ghana, the Ghana Revenue Authority (GRA), and the Ministry of Trade and Industry, warning that rampant smuggling of rice and sugar is spiraling out of control and threatening both national revenue and the survival of legitimate businesses.
In a detailed letter addressed to the Commissioner-General of the GRA, FABAG revealed that smuggling activities have intensified to unprecedented levels, virtually taking over the rice and sugar market and crippling fair competition. The group noted that the situation has escalated rapidly in recent months, especially with massive volumes of unapproved rice and sugar entering Ghana through unregulated routes at Aflao, Elubo, and other porous border points.
According to FABAG, legitimate importers and distributors of locally produced rice are being forced “to the brink,” losing out to illegal consignments that evade import duties and taxes. The Association estimates that the state has lost millions of cedis due to weakened enforcement and bureaucratic inertia.
“For years, we have sounded the alarm,” the statement emphasized. “But regrettably, government response has been hampered by delays, excuses, and insufficient action.”
FABAG argues that the primary driver of the smuggling surge is the widening duty differential between Ghana and its neighboring countries, particularly Togo and Ivory Coast. The disparity, the group explained, creates strong incentives for illicit traders operating in syndicates to bypass official channels and exploit cheaper duties abroad.
The Association warned that the consequences of unchecked smuggling extend far beyond business losses. Ghana’s agricultural and manufacturing sectors could face severe setbacks if the formal food import system collapses under the burden of illegal competition. Additionally, the group described smuggling as “economic sabotage,” stating that continued government inaction amounts to complicity.
■ FABAG’s Recommendations
FABAG outlined several urgent measures it believes government authorities must implement immediately, including:
1. A nationwide task force led by the GRA Customs Division to dismantle smuggling networks.
2. An overhaul of border management, including digital monitoring systems at major entry points.
3. Public disclosure of enforcement outcomes to improve accountability.
4. Stronger inter-agency collaboration between Trade, National Security, and border patrol units.
5. A fair review of import taxes and tariffs to reduce incentives for smuggling and support a level playing field.
“Ghana deserves transparent, robust enforcement measures to combat illicit trade,” the statement stressed. “If this trend continues unchecked, not only will the formal food import sector collapse, but our agricultural sector will suffer massively.”
■ A Call for Leadership
FABAG is urging the government to demonstrate leadership by acting immediately to “protect Ghana’s economy, safeguard public health, and secure the nation’s future.” The Association also pledged to continue working with stakeholders to promote a transparent and accountable trade ecosystem.
The letter was signed by Rev. John Awuuni, Chairman of FABAG, and copied to the Minister of Finance, the Minister of Trade and Industry, the National Security Coordinator, and the media.
Author: Edem Latsu Nukafu
Edem Latsu Nukafu, a passionate communications professional dedicated to public relations, journalism, media strategy, and content development. He holds both a Diploma and Bachelor of Arts Degree in Communication Studies (Public Relations) from the University of Media, Arts and Communication – UniMAC-IJ. A member of Ghana Journalists Association (GJA).
