Let’s begin by taking a walk down memory lane, back to the inaugural ceremony of President John Dramani Mahama. During that significant event, leaders from Burkina Faso, Mali, and Niger joined Ghana to reaffirm their commitment to regional integration and peace. It was a moment of unity, symbolizing the shared aspirations of West African states to foster economic cooperation and mutual prosperity.
Fast forward to today, and the dynamics appear to be shifting. Togo’s consideration of joining the Alliance of Sahel States (AES)—a coalition currently comprising Mali, Burkina Faso, and Niger—introduces a new chapter in regional politics. But what does this mean for Ghana, especially for its vital maritime sector?
This article delves into the economic and strategic implications of Togo’s potential alliance with the AES. We’ll explore how this shift could impact Ghana’s port competitiveness, transit trade revenues, and regional influence. We’ll also engage you, the reader, to consider: What can Ghana do to address this looming challenge and secure its position as a critical trade hub?
1.Current Situation of Ghana’s Port Sector
Ghana’s Tema Port has historically been the preferred gateway for landlocked neighbours Burkina Faso, Mali, and Niger, facilitating critical transit trade for the Sahel region. However, over time, operational inefficiencies, higher costs, and systemic challenges have begun to undermine its competitive edge. With Togo’s Lomé Port emerging as a formidable alternative, Ghana faces a stark reality: adapt and innovate, or risk losing its position as the region’s premier trade hub.
Operational Inefficiencies and Competitiveness
Tema Port’s operational challenges are becoming increasingly pronounced. Customs clearance processes, critical to trade facilitation, often face disruptions due to system outages and inefficiencies. The Integrated Customs Management System (ICUMS), introduced to streamline cargo clearance, has been plagued by frequent breakdowns, leading to delays and frustrations for traders. Compounding this is the lack of robust logistical support, including outdated scanning equipment and insufficient capacity to move goods efficiently. These issues create bottlenecks, erode confidence in Ghana’s port systems, and ultimately drive businesses to seek alternatives.
In contrast, Togo’s Lomé Port has positioned itself as a more attractive option, offering faster processing times and lower charges. According to the World Bank’s Doing Business Report, Togo outperforms Ghana in the “Trading Across Borders” category, which measures the time and cost of importing and exporting goods.
Similarly, the Logistics Performance Index (LPI) ranks Togo higher than Ghana in infrastructure and timeliness, key indicators of trade facilitation efficiency. These rankings reflect Togo’s commitment to improving port operations, giving it a decisive edge over Ghana.
Economic Consequences for Ghana
The implications of Ghana’s declining competitiveness are far-reaching. The maritime sector is a cornerstone of Ghana’s economy, contributing significantly to direct taxes and supporting critical industries such as logistics, transportation, and shipping. As cargo is increasingly diverted to neighbouring ports like Lomé, Ghana stands to lose not just revenue but also its reputation as a reliable trade hub. Furthermore, Ghana’s aspiration to establish a 24-hour economy—one that operates round the clock to maximize productivity and attract investment—is under threat.
Efficient ports are a linchpin of any 24-hour economy, enabling seamless movement of goods and ensuring that businesses can operate without disruption. The inefficiencies at Tema Port stand in stark contrast to this vision, making it increasingly challenging to align the port’s operations with the government’s broader economic goals.
Impact on Transit Trade
Transit trade with Burkina Faso, Mali, and Niger has long been a critical revenue source for Ghana. However, Togo’s proposed alliance with the Alliance of Sahel States (AES) and its focus on creating an exclusive transit corridor could shift this trade away from Ghana entirely. The efficiency and cost-effectiveness of Lomé Port, coupled with strategic partnerships within the AES, make Togo an appealing alternative for these landlocked countries. Imagine the economic fallout if Ghana were to lose a significant share of this trade.
The ripple effects would be felt across multiple sectors, from transportation and warehousing to retail and logistics, compounding the challenges of revenue generation in an already strained economy. These challenges bring us to a crucial juncture. Ghana must urgently address the inefficiencies in its port operations and align its policies with the realities of regional competition. But how does Tema Port stack up against Lomé Port, and what lessons can Ghana learn from Togo’s approach?
2. Comparative Analysis: Ghana (Tema) vs. Togo (Lomé) Ports
The competition between Ghana’s Tema Port and Togo’s Lomé Port offers a fascinating case study of how operational efficiency, cost competitiveness, and strategic planning shape regional trade dynamics. While Tema Port has traditionally been a leader, recent trends and data suggest that Lomé Port is gaining a significant edge, reshaping the landscape for transit trade in West Africa.
Port Charges and Cost Competitiveness
One of the most compelling reasons for traders and shipping lines to shift to Lomé Port lies in its cost structure. Lomé consistently offers lower marine, container handling, and vehicle handling charges compared to Tema. For instance:
• Marine Charges: Lomé Port provides a nearly 15% cost advantage over Tema.
• Container Handling Charges: Lomé Port’s rates are 44-58% lower, depending on the size and type of container.
• Vehicle Handling: Lomé offers competitive rates, while Tema lacks a transparent pricing structure for vehicles.
For traders, these differences translate into significant cost savings, making Lomé a more attractive option, particularly for bulk shippers and those dealing with high-volume cargo.
Operational Efficiency
Beyond pricing, Lomé Port excels in operational efficiency. It boasts streamlined customs processes and reliable logistics systems, reducing delays and increasing throughput. According to the World Bank Logistics Performance Index (LPI), Togo scores higher in key indicators like infrastructure quality and timeliness. These factors are critical in an industry where even minor delays can lead to significant cost escalations and supply chain disruptions.
Tema Port, by contrast, continues to grapple with inefficiencies such as delays in customs clearance, scanner breakdowns, and logistical bottlenecks. These issues not only increase costs for traders but also erode confidence in Ghana’s ability to maintain a competitive and reliable port system.
Regional Integration and Trade Alliances
Togo’s strategic decision to align with the Alliance of Sahel States (AES) further strengthens its position. In fostering closer ties with Burkina Faso, Mali, and Niger, Lomé Port is poised to become the exclusive transit hub for these landlocked nations. This alliance threatens to divert a substantial portion of Ghana’s transit trade, a key revenue source for the Tema Port and the national economy.
Moreover, Togo’s success in integrating its port operations with regional trade networks demonstrates a proactive approach to leveraging partnerships for economic gain. Ghana, on the other hand, risks being left behind as regional players prioritize efficiency and cost-effectiveness over historical trade routes.
The comparative weaknesses of Tema Port directly undermine Ghana’s ambition to establish a 24-hour economy. Efficient and reliable port operations are the backbone of such an economy, enabling the seamless movement of goods and services around the clock. Lomé’s superior performance highlights the gap Ghana must close to achieve this vision. Imagine a trader deciding between Lomé and Tema. One offers faster processing, lower costs, and fewer bureaucratic hurdles. The other struggles with delays and higher expenses.
The choice is obvious, and it underscores the urgent need for Ghana to address these disparities. This comparative analysis reveals stark differences in cost, efficiency, and strategic positioning between the two ports. The question now is: What can Ghana do to reclaim its competitive edge and safeguard its transit trade from further erosion? Let’s explore actionable measures in the next section.
3. Potential Threats of Togo’s Alliance with the AES
Togo’s potential alliance with the Alliance of Sahel States (AES)—comprising Burkina Faso, Mali, and Niger—marks a pivotal moment in West Africa’s trade dynamics. While it represents an opportunity for Togo to cement its role as a regional logistics hub, it simultaneously poses significant threats to Ghana’s maritime sector and broader economic interests.
Threat 1: Loss of Transit Trade
Transit trade has long been a lifeline for Ghana’s Tema Port, serving as the gateway for landlocked countries like Burkina Faso, Mali, and Niger. These nations rely on Ghana for access to international markets, generating substantial revenue for the port and related industries. However, Togo’s growing partnership with the AES could reroute this vital trade through Lomé Port, cutting Ghana out of the equation.
Consider this: If Lomé becomes the preferred transit hub, Ghana stands to lose not only revenue from transit fees but also the ancillary economic activities tied to the movement of goods—transportation, warehousing, and even local trade. This shift would leave a significant void in Ghana’s economy, further compounded by the loss of direct taxes derived from port operations.
Threat 2: Competitive Disadvantage
As outlined in the comparative analysis, Lomé Port’s lower charges and greater efficiency make it a natural choice for traders seeking to minimize costs and avoid delays. When coupled with the strategic backing of the AES, Togo gains a decisive competitive advantage over Ghana. This alignment positions Lomé as a cost-effective, reliable alternative, reinforcing the perception that Ghana is losing its edge. Moreover, the World Bank’s Doing Business Report and Logistics Performance Index (LPI) ratings favour Togo in terms of trade facilitation and logistics efficiency.
These rankings carry weight in global trade discussions, influencing the decisions of multinational corporations, logistics firms, and investors. Ghana’s inability to address these shortcomings risks cementing its reputation as an increasingly inefficient trade partner.
Threat 3: Political and Economic Marginalization
The AES alliance has the potential to shift regional power dynamics, reducing Ghana’s influence in West African trade and diplomacy. Togo’s strategic alignment with Burkina Faso, Mali, and Niger could lead to a more integrated trade bloc that excludes Ghana, sidelining the country in critical discussions on regional trade and infrastructure development.
Such marginalization could weaken Ghana’s bargaining power in broader continental initiatives like the African Continental Free Trade Area (AfCFTA), where regional coalitions play a pivotal role in shaping trade policies and agreements. Without proactive measures, Ghana risks becoming a peripheral player in its own region.
Threat 4: Undermining the 24-Hour Economy Vision
Ghana’s vision for a 24-hour economy hinges on efficient trade and logistics systems. The potential loss of transit trade to Togo, coupled with inefficiencies at Tema Port, undermines this ambition. A 24-hour economy requires seamless operations, competitive pricing, and robust infrastructure—areas where Ghana is currently lagging. If these challenges are not addressed, the vision of round-the-clock economic activity may remain aspirational rather than achievable. The convergence of these threats highlights the urgency for Ghana to act.
The next logical step is to explore what Ghana can do to counter these challenges and reclaim its position as a regional trade leader. Let’s examine the practical measures that can address this looming crisis.
4. Practical Measures for Ghana to Address the Issue
Ghana’s maritime sector stands at a critical juncture, requiring immediate, medium-term, and long-term interventions to secure its position as a key trade hub in West Africa. The challenges posed by Togo’s potential alliance with the Alliance of Sahel States (AES) demand bold decisions, innovative strategies, and a rethinking of governance within the maritime and port sectors.
In the short term, governance must be the cornerstone of efforts to address the pressing challenges in Ghana’s port sector. The maritime and port industry is not just a revenue generator but a strategic national asset, supporting critical economic activities and offering vast untapped potential. Leadership in this sector must transcend mere cost-cutting; it requires individuals with the vision and expertise to strategically position Ghana in the global maritime space.
The ideal leaders for Ghana’s maritime sector should not only focus on operational efficiencies but also actively seek and secure innovative funding options to drive investment into port infrastructure and technology.
They must harness the potential of Ghana’s over 550-kilometer coastline, drawing lessons from nations like Singapore, which has leveraged its maritime resources to become a global trade hub. Ghana’s coastline offers similar opportunities, including aquaculture, marine tourism, and ocean-related energy projects, which could significantly diversify revenue streams.
Tapping into the blue economy—a sector contributing an estimated $2.5 trillion annually to global GDP—must become a priority. Leadership should explore avenues like ocean finance, a growing field that provides alternative funding for sustainable marine and coastal projects. This includes investments in renewable ocean energy, coastal resilience, and marine biodiversity initiatives.
In integrating the principles of the blue economy into the strategic framework, Ghana can create a sustainable financing model that reduces dependence on traditional revenue sources while unlocking the full potential of its maritime assets.
Governance structures must also promote accountability, transparency, and efficiency, ensuring that reforms are implemented effectively and with measurable impact. Immediate operational improvements, such as stabilizing the ICUMS system to eliminate frequent outages, are essential to restoring trader confidence and improving cargo clearance processes. Similarly, investing in advanced scanning equipment and streamlining terminal operations will enhance efficiency and reduce delays.
Ultimately, Ghana requires visionary leadership that understands international trade dynamics and the transformative potential of maritime resources. Leaders must not only implement short-term fixes but also lay the groundwork for long-term innovation and sustainable growth. Without such strategic governance, Ghana risks further erosion of its competitive edge in a rapidly evolving regional trade landscape.
Medium-term strategies must focus on addressing cost competitiveness. Ghana’s port charges, which are currently higher than those of Lomé Port, need to be reviewed and reduced to attract and retain transit trade. Non-essential charges, such as regulatory charges, some of which only go to shore up the “Internally Generated Funds” and not for actual services rendered, should be eliminated or reviewed downward to create a level playing field with regional competitors.
Additionally, Ghana’s customs procedures, often characterized by excessive bureaucracy, must be streamlined to enhance the overall trade experience. Comparative studies of Togo’s streamlined operations should inform the reforms, ensuring that Ghana adopts global best practices.
Diplomatic engagement with Burkina Faso, Mali, and Niger is also essential. Ghana should renegotiate trade agreements with these landlocked neighbours to secure long-term commitments for the use of Tema Port. This approach would help mitigate the risk of losing transit trade to Lomé.
In the long term, Ghana needs to transform its maritime sector into a resilient and innovation-driven industry. Infrastructure development is paramount, with Tema Port requiring significant upgrades to handle higher volumes of cargo and improve throughput. Expanding berths, building advanced logistics hubs, and modernizing port facilities will position Tema as a world-class trade gateway.
Leveraging cutting-edge technologies like blockchain for secure cargo tracking and artificial intelligence for predictive logistics can provide a much-needed competitive edge.
These investments will not only increase efficiency but also align with Ghana’s vision of establishing a 24-hour economy, where seamless operations around the clock are critical for productivity and global competitiveness.
Looking ahead, the challenges are daunting. Ghana’s maritime sector is in dire need of fresh ideas and bold innovations to secure its future. The leadership of this sector must be prepared to navigate these complexities with vision and expertise, ensuring that Ghana remains relevant in an increasingly competitive regional trade landscape.
Only by addressing these challenges with urgency and foresight can Ghana reclaim its position as a leader in West African trade.
5. Conclusion
Ghana’s maritime sector faces an inflexion point, one that demands immediate action and a recalibration of its strategic approach to regional trade. Togo’s potential alliance with the Alliance of Sahel States (AES) underscores the urgency of addressing systemic inefficiencies, improving cost competitiveness, and fostering innovative leadership within the sector. At stake is not only Ghana’s position as a preferred trade hub but also the broader vision of a 24-hour economy, which hinges on the efficient and seamless operation of critical infrastructure like Tema Port.
The challenges are clear: operational inefficiencies, high costs, and governance gaps have eroded Ghana’s competitive edge, pushing traders and shipping lines toward more attractive alternatives like Lomé Port. The threats are compounded by Togo’s proactive alignment with the AES, which could divert transit trade from Burkina Faso, Mali, and Niger entirely away from Ghana. This is not merely a loss of revenue; it is a loss of strategic influence in the region’s economic and trade policies.
However, Ghana’s response can turn the tide. In the short term, reforms in governance and operational efficiency must be prioritized. Strong, visionary leadership is the foundation upon which all other interventions must be built. Leaders who understand international trade, the blue economy, and the nuances of port innovation are essential to driving the necessary changes. Immediate improvements in customs processes, equipment reliability, and cost structures will send a strong signal to traders and shipping lines that Tema Port is serious about reclaiming its competitiveness.
In the medium term, Ghana must address its cost disadvantages and deepen its trade relationships with Sahelian states. Lowering port charges, streamlining customs procedures, and offering incentives to retain transit trade are practical steps that can bolster Ghana’s market position. Diplomatic efforts will also play a critical role in maintaining strategic ties with neighbouring landlocked countries.
Long-term success will depend on transforming Tema Port into a resilient and future-ready trade hub. Investments in infrastructure, technology, and innovation will not only enhance efficiency but also align the port’s operations with the demands of a 24-hour economy. In leveraging cutting-edge tools like artificial intelligence and blockchain, Ghana can set new benchmarks for trade facilitation in the region.
The road ahead is challenging, but the rewards of decisive action are immense. Ghana has the opportunity to reposition itself as a leader in West African trade and logistics, safeguarding its economic interests while advancing regional integration. The question now is: Will Ghana seize this moment to act, or will it allow others to dictate the region’s trade future?
The choice is clear, and the time to act is now. Stakeholders, policymakers, and port authorities must come together to implement these measures with urgency and precision. Ghana’s maritime sector is not just an economic asset; it is a strategic pillar for the nation’s growth and influence in West Africa. The opportunity to reclaim its position is within reach—if the right decisions are made today.
![Nana Akua Amankwaa, Kankam Boadu, five [5] other TOP journalists selected for SWAG sports journalist of the year](https://www.ghanamma.com/wp-content/uploads/2025/01/InShot_20250119_212151753-768x768.jpg "Nana Akua Amankwaa, Kankam Boadu, five [5] other TOP journalists selected for SWAG sports journalist of the year")
