John Awuni is the Executive Chairman of FABAG
The Food and Beverages Association of Ghana (FABAG) has warned that the country is losing hundreds of millions of cedis every week due to unmonitored and unchecked illicit trade.
According to FABAG President John Awuni, while legitimate businesses struggle under high taxes and rising operational costs, smugglers continue to flood the market with untaxed and often substandard goods.
“This undermines local industries and drains government revenue,” he said.
In a press release sighted by GhanaWeb Business, FABAG revealed that essential commodities such as rice, cooking oil, sugar, alcoholic beverages, and textiles are being smuggled into Ghana through both official and unofficial entry points.
“Recent intelligence from our partners in border communities and industry stakeholders paints a dire picture: essential commodities such as rice, cooking oil, sugar, alcoholic beverages, and textiles are being extensively smuggled into the country,” the statement read.
“FABAG estimates that Ghana is losing hundreds of millions of cedis every week due to unmonitored smuggling activities. This massive revenue drain threatens the stability of our economy, diminishes investor confidence, erodes the Ghanaian cedi, and jeopardizes employment within our manufacturing and distribution sectors,” it added.
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The Association stressed that illicit trade not only deprives the government of vital tax revenue but also weakens the competitiveness of local producers, ultimately stalling national development.
FABAG called on the government and relevant agencies, including the Customs Division of the Ghana Revenue Authority and the Ministry of Trade and Industry, to intensify enforcement efforts.
They urged the deployment of advanced surveillance technologies and stronger collaboration with border communities to curb the menace.
The group also appealed for a review of Ghana’s import tax regime, arguing that high duties are a major driver of smuggling, as traders seek cheaper alternatives outside formal channels.
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