Paga, a busy border town in Ghana’s Upper East Region, has emerged as the country’s most active informal trade corridor, moving more goods than any other entry point during the final quarter of 2024.
According to the Ghana Statistical Service’s maiden Informal Cross Border Trade report, Paga recorded GH¢168.5 million in informal exports and GH¢116.1 million in imports between October and December, making it Ghana’s busiest informal trade route for both categories.
The comprehensive survey, which captured the scale of unrecorded trade between Ghana and its neighbours Togo, Burkina Faso, and Côte d’Ivoire, estimates that total informal trade reached GH¢7.4 billion during the period, equivalent to 4.3 percent of Ghana’s total trade value. This makes the informal economy a significant, though often invisible, pillar of the country’s regional commerce.
From early morning to late evening, the Paga border bustles with activity as traders on motorbikes, tricycles, and pickup trucks move food items, livestock, cooking oil, and textiles across both sides.
The Upper East Region, where Paga is located, recorded GH¢1.27 billion in informal exports, fifteen times higher than the Savannah Region’s GH¢82.9 million, making it Ghana’s main trade corridor. Seven of the country’s ten most frequently used export borders are found in the Upper East, including Namoo Doone, Belimtagna, Kulungugu, Chamataa, Gentiga No.1, and Tambalugu, underscoring the region’s dominant role in linking Ghana to Burkina Faso.
But the informal economy stretches far beyond Paga. In the North East Region, the Nakaku No.2 border has become a major hub, while along the eastern corridor, Volta Region’s Aflao Main, Dekeme/Beat 6, and Chief Palace borders remain vibrant trade points. Aflao Main alone handles large volumes of cooking oil, rice, textiles, and other consumables from Togo, contributing more than GH¢50 million in both exports and imports.
In the west, cross border exchanges between Ghana and Côte d’Ivoire continue through towns in the Western and Western North regions, dominated by food and manufactured products. Even the less active Savannah Region supports significant flows of food and livestock into Ghana’s northern markets. Together, these border points form a nationwide web of trade activity that, though largely unrecorded by customs, sustains livelihoods and keeps goods circulating across the subregion.
The report reveals that Ghana recorded a trade surplus of GH¢576.4 million with Burkina Faso and GH¢377.6 million with Côte d’Ivoire but a deficit of GH¢539.3 million with Togo. Informal trade represented 61.2 percent of Ghana’s total commerce with Togo, 55.7 percent with Côte d’Ivoire, and 37.1 percent with Burkina Faso.
These figures confirm that the bulk of Ghana’s trade with its closest neighbours takes place outside formal systems. Beverages, food, and manufactured goods dominate informal exports, while cooking oil, mattresses, rice, and livestock top the list of imports, with over GH¢300 million worth of livestock imported compared to around GH¢177 million exported.
Transporting these goods remains a small scale but high frequency operation. Tricycles and motorbikes are the main modes of transport used in informal trade, reflecting the small scale, high frequency nature of border trading. These micro traders power the informal trade network that connects Ghana’s rural border communities to wider regional markets.
Speaking at the launch of the survey on Wednesday, October 22, 2025, Government Statistician Dr. Alhassan Iddrisu said the findings highlighted the immense contribution of unrecorded trade to the economy. “Informal trade tells us that the true size of Ghana’s border economy is much larger than previously thought. This evidence will help design policies that support traders with finance, infrastructure, and simplified customs processes,” he stated.
The survey covered 321 active border points across ten regions, using direct observation and interviews with traders to measure both imports and exports of goods and services not captured in official trade records. Dr. Iddrisu emphasized that these results would serve as a strong basis for policy decisions and strengthen the foundation for better economic planning.
Gender participation in the survey revealed that men accounted for 65.7 percent of export transporters while women represented 41.3 percent of import transporters, particularly in the Savannah, Northern, and Western regions. However, women constitute over 70 percent of on foot traders in Ghana’s informal cross border commerce, often moving goods by foot or bicycle to transport food, beverages, and household essentials daily between border markets.
The report identified several challenges affecting informal traders, including limited access to credit, harassment at border posts, and lack of awareness of trade documentation. Many traders operate without proper identification or paperwork, exposing them to extortion and goods confiscation during inspections.
Despite its scale, the informal sector faces structural challenges including weak infrastructure, limited trader protection, and restricted access to finance. The Ghana Statistical Service recommended measures such as simplifying trader registration, providing access to microcredit, offering training in record keeping and product quality standards, and improving border infrastructure.
Dr. Iddrisu also called for boosting domestic production of items like cooking oil and mattresses to cut dependence on imports, and urged collaboration with neighbouring countries on data sharing to explore formalizing informal trade.
The report revealed that most informal exchanges occurred at Ghana’s southern borders, notably with Togo, where traditional market linkages are deeply rooted. Northern borders with Burkina Faso are dominated by livestock and grain exchanges, while western crossings with Côte d’Ivoire involve palm oil, cocoa products, and processed foods.
The GSS noted that capturing informal trade data is essential for designing inclusive economic and trade policies under the African Continental Free Trade Area. By quantifying the flow of goods outside formal systems, policymakers can better estimate Ghana’s real export potential and trade balance.
The exercise aligns with the ECOWAS Trade Liberalization Scheme, which encourages data harmonization among member states to facilitate easier movement of goods and services within the subregion. The GSS recommended stronger collaboration between national statistical offices, customs, and local governments to regularly track informal trade data.
The data show that Paga is not just a border crossing but a national trading hub that reflects the pulse of an economy thriving beyond the formal sector. From Aflao in the east to Kulungugu in the north and smaller crossings in the Savannah corridor, Ghana’s border communities together form an invisible trading system that moves billions of cedis worth of goods each quarter.
These routes may not appear on official customs ledgers, yet they keep markets supplied, sustain jobs, and maintain the flow of goods across the subregion. The maiden ICBT report places a spotlight on this often overlooked economy, revealing that Ghana’s borders, especially Paga, are not merely points of entry and exit but engines of resilience and growth quietly shaping the nation’s trade landscape.