A coalition of trade and business associations has strongly opposed a directive by the Ministry of Finance requiring all marine cargo bound for Ghana to be compulsorily insured with local insurance companies, describing the policy as an unnecessary burden on businesses and a form of regulatory overreach.
The Coalition of Concerned Exporters, Importers, Traders and Freight Forwarders, together with the Food and Beverages Association of Ghana (FABAG) and the Traders Advocacy Group Ghana (TAGG), said the directive, intended to enforce Section 222 of the Insurance Act, 2021 (Act 1061), would increase the cost of doing business and undermine free commercial decision-making.
Risk
In a statement signed by the Convener of the Coalition of Concerned Exporters, Importers, Traders and Freight Forwarders, Mr. Michael Obiri-Adjei, the groups argued that marine cargo insurance is a private commercial risk arrangement between buyers, sellers and financiers, and does not present any public third-party risk that justifies compulsory regulation.
The statement stressed that mandatory insurance is only justified in circumstances where activities pose clear risks to third parties, such as motor third-party insurance or insurance for public commercial facilities. “Marine cargo insurance does not fall within this category,” the coalition noted.
Concerns
The groups further criticised the directive for creating a de facto local monopoly, warning that it is anti-competitive and would force businesses to purchase more expensive policies, costs that would eventually be passed on to consumers. They argued that compelling traders to insure cargo locally, even when foreign insurers offer more competitive options, contradicts government efforts to reduce the cost of doing business.
The coalition also highlighted practical challenges within the shipping industry, noting that most international trade is conducted under Cost, Insurance and Freight (CIF) terms, where suppliers already procure insurance. According to the statement, enforcing an additional local insurance requirement would lead to unnecessary double insurance with no added benefit.
It added that in credit-based transactions, suppliers often retain ownership interests in goods, making it impractical for local traders to dictate insurance arrangements.
While commending recent fiscal measures that have stabilised the cedi, the coalition warned that the insurance mandate could reverse cost-saving gains. The statement urged the Ministry of Finance to withdraw the directive, scheduled to take effect on February 1, 2026, and to engage stakeholders to develop a more practical marine insurance policy framework.
