Professor Ransford Gyampo, the esteemed Chief Executive Officer of the Ghana Shippers’ Authority, has brought to light critical weaknesses within Ghana’s import system, primarily stemming from the alarmingly low adoption of local cargo insurance. Speaking at a series of sensitisation seminars held at the Ghana Shippers’ House, Prof. Gyampo underscored the significant financial risks and economic losses Ghana faces by predominantly relying on foreign insurers for its vast sea trade.

Despite the fact that 80-90% of global trade volume is transported by sea, with thousands of containers lost annually due to maritime incidents, piracy, terrorism, conflict, and industrial actions, research reveals a troubling trend in Ghana. Although the majority of import shipments into Ghana are transacted on a Cost-Insurance-Freight (CIF) basis, a mere 6% of these imports are insured locally. This low uptake is compounded by a profound lack of awareness among importers; approximately 75% of them possess little to no knowledge regarding the insurance cover on their cargo, nor are they adequately informed about their rights and obligations as shippers.

Prof. Gyampo vehemently warned that this pervasive reliance on foreign insurers leads to sustained capital flight, depriving Ghana's local economy of crucial revenue that could otherwise stimulate growth and create jobs. The insurance premiums paid abroad could instead bolster the domestic insurance industry, enhancing its technical capacity and fostering economic development within Ghana’s financial services sector. Furthermore, foreign insurance arrangements place Ghanaian importers at a significant disadvantage, characterized by limited control over premium rates, a lack of transparency in policy terms, protracted delays and higher costs associated with claims processing, and often complex and cumbersome dispute resolution mechanisms.

In stark contrast, local cargo insurance offers a myriad of benefits that directly safeguard the interests of the trading community and contribute broadly to national economic development. These advantages include improved regulatory oversight, easier access to local insurers, significantly faster claims settlement processes, and greater overall transparency. By retaining insurance premiums within the country, Ghana can cultivate a more resilient and sustainable domestic insurance market.

To address these critical issues, a decisive policy intervention has been initiated. Prof. Gyampo explained that a major directive from the Honourable Minister of Finance, Dr. Cassiel Ato Forson, mandates the enforcement of a Local Cargo Insurance policy for all commercial imports into the country. This policy, which is backed by existing law under Section 222 of the Insurance Act, 2021 (Act 1061), is set to become effective on February 1, 2026. The Ghana Revenue Authority (GRA) and the Bank of Ghana (BoG) are tasked with its enforcement.

The primary objectives of this strategic engagement are threefold: to protect Ghanaian shippers from avoidable losses, to retain vital insurance premiums within the national economy, and to foster the robust growth of the domestic insurance market. Prof. Gyampo urged all stakeholders, including importers, shipping service providers, and insurers, to embrace this directive as a shared responsibility, recognizing its critical role in strengthening Ghana's economy and safeguarding its trading interests.