The Ashanti Business Owners Association (ABOA) has formally objected to a proposed government policy that would require importers to place compulsory local insurance cover on marine cargo imported into Ghana, warning that the directive could disrupt trade, raise costs, and undermine investor confidence.
In a press release issued on Tuesday, the association said that while it supports efforts to strengthen Ghana’s domestic insurance industry, the proposed measure poses significant risks to international trade compliance, insurance efficiency, and macroeconomic stability.
ABOA argued that international trade is governed by established commercial frameworks such as Incoterms, particularly Cost, Insurance and Freight (CIF) arrangements, where insurance responsibilities are contractually agreed between buyers and sellers.
According to the association, imposing mandatory local insurance would override these agreements and violate the principle of sanctity of contract.
“The policy introduces regulatory uncertainty into cross-border trade transactions,” the statement said, noting that such uncertainty could complicate existing supply and financing contracts.
The association also raised concerns that the directive could conflict with Ghana’s obligations under international trade agreements, including the World Trade Organization (WTO) and the African Continental Free Trade Area (AfCFTA).
ABOA warned that the policy could be interpreted as a non-tariff barrier to trade, potentially exposing Ghana to reciprocal trade restrictions or formal complaints from trading partners.
On insurance efficiency, ABOA pointed out that most imported goods are already insured at their country of origin by internationally rated insurers. Requiring additional local insurance, it said, would result in double insurance, creating inefficiencies in risk allocation and complicating claims management, subrogation, and jurisdiction over disputes.
The association further cautioned that the additional insurance premiums would increase the landed cost of imports, with knock-on effects on wholesale and retail prices. This, it said, could fuel inflation and raise production costs, particularly in import-dependent sectors of the economy.
Operational challenges at the ports were also highlighted. ABOA warned that mandatory insurance compliance checks could delay cargo clearance, increase transaction costs, and undermine ongoing government efforts to improve trade facilitation and port efficiency.
Beyond immediate trade and cost concerns, the association said abrupt regulatory changes without adequate consultation or transition arrangements could weaken Ghana’s ease-of-doing-business credentials and erode investor confidence.
“A sustainable insurance market cannot be built through compulsory mechanisms that distort trade flows and increase systemic costs,” the statement said.
ABOA called on the Government of Ghana, the Ministry of Finance, the Ministry of Trade, Agribusiness and Industry, and the National Insurance Commission (NIC) to suspend the proposed directive and engage stakeholders in consultations to develop what it described as a technically sound and economically efficient alternative.
The statement was signed by Charles Kusi Appiah Kubi, Executive Secretary of the Ashanti Business Owners Association.
Source: www.kumasimail.com
