Ghana’s Food and Beverage Association warns of rising sugar, rice smuggling crisis
FABAG reports widespread rice and sugar smuggling, urging urgent government action to protect businesses and restore fair market competition.
GHANA – The Food and Beverages Association of Ghana (FABAG) has issued a strong warning over the growing prevalence of smuggling activities that have increasingly dominated the country’s rice and sugar market.
In a formal letter addressed to the Ghana Revenue Authority (GRA), the association cautioned that legitimate importers and distributors are facing severe strain as the market becomes flooded with illicit products entering the country through unapproved routes.
According to the association, key entry points such as Aflao along the Togo border and Elubo near the Ivory Coast frontier have become conduits for large volumes of smuggled rice and sugar.
FABAG stated that this illegal trade has distorted fair market competition and deprived the nation of substantial revenue in taxes and duties, undermining formal businesses that operate within Ghana’s regulatory framework.
The association noted that despite multiple warnings over the years, bureaucratic challenges have stalled decisive intervention.
FABAG indicated that the lack of timely enforcement has enabled smuggling operations to expand, causing considerable financial losses for compliant Ghanaian enterprises.
FABAG also highlighted that the significant duty differences between Ghana and neighbouring countries create strong incentives for illegal trade. While legitimate businesses adhere to tax obligations and contribute to employment, smugglers exploit lower duties outside the country to evade payments and undercut domestic prices.
To address the situation, FABAG is calling for immediate and comprehensive measures to curb the inflow of illicit goods.
The association recommended the formation of a nationwide task force led by GRA Customs, the implementation of enhanced border management systems including digital surveillance, and the public release of enforcement outcomes.
It further urged stronger coordination among the Ministry of Trade, National Security agencies, and border patrol units to dismantle entrenched smuggling networks.
Additionally, FABAG proposed a review of import tax structures to reduce disparities that encourage smuggling.
The association warned that continued inaction could severely damage both the formal import sector and local rice production, resulting in significant revenue losses and weakening the agricultural industry.
FABAG stressed that swift intervention is essential to safeguard the economy, protect public health, and maintain the integrity of Ghana’s trade system.
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