The CEO of the Ghana Shippers’ Authority, Prof Ransford Gyampo, has revealed major weaknesses in Ghana’s import system.
He is warning that the country continues to lose significant value due to low uptake of local cargo insurance.
Speaking at a sensitisation seminar at the Ghana Shippers’ House on Wednesday, he said that despite the dominance of sea trade and the risks involved, local insurance participation remains extremely low.
“Research has revealed that although the majority of import shipments into Ghana are transacted on Cost-Insurance-Freight (CIF) basis, only about 6% of imports are insured locally,” he said.
He added that awareness among importers remains a major challenge.
“Furthermore, approximately 75% of importers have little or no knowledge of the insurance cover on their cargo and a limited awareness among shippers regarding their rights and obligations,” he stated.
Prof. Gyampo warned that the situation has led to sustained capital flight, depriving the local economy of critical revenue.
“Concerns have therefore been raised on the significant capital flight from Ghana through continued reliance on foreign insurers for cargo insurance over the years.
“It is also obvious that insurance premiums paid abroad deprive the local insurance industry of revenue that could otherwise stimulate economic growth, create jobs, and enhance technical capacity within Ghana’s financial services sector,” he said.
He stressed that insuring cargo abroad places Ghanaian importers at a disadvantage.
“Additionally, when import cargo insurance is arranged abroad, shippers are often disadvantaged in several ways, including: Limited control over premium rates; Lack of transparency in policy terms; Delays and higher costs associated with claims processing; and Cumbersome and often complex dispute resolution processes,” he noted.
By contrast, he argued that local insurance offers clear benefits.
“By contrast, local underwriting offers improved regulatory oversight, easier access to insurers, faster claims settlement, greater transparency, and direct contribution to national economic development.
“Clearly, local cargo insurance better safeguards the interests of the trading community while delivering broader economic benefits to the country,” he said.
He explained that the policy push is backed by a directive from the Finance Ministry to enforce local cargo insurance under existing law.
“As we are all aware, today’s strategic engagement is necessitated by a major policy directive issued by the Honourable Minister of Finance, Dr Cassiel Ato Forson, requiring the Ghana Revenue Authority (GRA) and the Bank of Ghana (BoG) to enforce the mandatory Local Cargo Insurance policy for all commercial imports into the country, effective February 1, 2026, in accordance with Section 222 of the Insurance Act, 2021 (Act 1061),” he stated.
Prof. Gyampo said the move is aimed at protecting shippers and strengthening the domestic insurance market.
“This decisive policy intervention is intended to protect shippers, retain insurance premiums within the national economy and foster the growth of a resilient and sustainable domestic insurance market,” he said.
He urged stakeholders to support the policy.
“I therefore urge all importers, shipping service providers, and insurers gathered here to embrace this directive as a shared responsibility,” he added.
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