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2022 was tumultuous. For a significant portion of the business community and the ordinary citizen, it was bad rather than good. For those of us in the Import and Export of food commodities, we bled through exchange rate hikes, removal of benchmark values, demand shortfalls, and outrageous shipping line charges, among others.
Given these, it would appear logical to conclude a negative verdict on the year. However, that would be improper, because such a verdict does not account for the gains we made as a community within the year under review.
While arguable, the most significant challenge within the Ghanaian port community lies in customs procedures and regulatory requirements to get goods in and out of our ports. The shortfalls of these processes cause members of the community to bear avoidable costs and provide an avenue for exploitative behavior by customs officials, shipping lines, and other agencies.
Within the year, significant improvements have been realized pertaining to these processes through internal actions initiated by agencies and advocacy pressure from groups within the port community such as the EXIM Frozen Foods Association of Ghana, Ghana Institute of Freight Forwarders, Ghana Union of Traders’ Association, Importers and Exporters Association of Ghana, amongst others.
Notable amongst these improvements are the changes management of the GPHA, Meridian Port Services Export Terminal, Meridian Port Services T2, and Customs Division – GRA has made to their operations.
The significant enhancements to the Integrated Customs Management System (ICUMS) are also worthy of mention. ICUMS continues to improve and remains a beacon of customs efficiency in our sub-region. Management and developers of the system, GhanaLink, have been attentive to the needs of users of the platform and continue to modify the system to keep abreast of international customs practices.
Though a lot more could be done to make the system at par with changing business needs, the ICUMS platform is critical to the implementation of all modifications to our customs practice in the future, in the same way, it has improved current customs procedures in the country.
At the various terminals and warehouses, the release and transport of cargo have become less cumbersome. While optimum efficiency has not yet been achieved in the streamlining of these processes, the associated costs of previous delays have significantly reduced as a result of the modifications made. It is welcome news that managers of these agencies are also looking to complete the digitalization of these systems by early next year.
LCB Worldwide Ghana must also be commended for the role they have played in the local industry. Following the COVID-19 pandemic, all countries have been on heightened alert concerning the safety of goods entering their ports. Through the initiative of the Ministry of Health, Ghana Health Services, and LCB’s efforts, the international community has trusted that raw food exports leaving Ghana are safe and do not pose any possible harm to their citizens.
As a result, our export revenues have not dropped because of safety concerns. Related businesses have also continued to operate normally, and the government has not unduly lost revenue. LCB Worldwide Ghana’s efforts have also ensured that goods entering Ghana are safe too, especially consumable goods like frozen foods.
The combination of all these factors has ensured that even within a troubled year, businesses have been able to sustain themselves and achieve some levels of growth. In the New Year, we must look to maintain the attitudes that made us resilient this year, maintain our efforts to better our processes, and continue to collaborate in good spirits.
While we look to turn the tide and speak with optimism about the new year, a number of things are of concern. Notable amongst these is the government’s intention to revise the VAT rate upward by 2.5%. Similarly, we are concerned about the government’s present position on benchmark values.
It is in appreciation of the government’s dire need to raise revenue that we advise that alternative policy positions should be favored. We anticipate that these policies will significantly increase business operating costs and potentially stifle the recovery, sustainability, and growth of businesses (as applicable).
However, businesses can adjust to these policy changes if given requisite assurances that they are temporal and will be reversed as soon as the economy hits better strides following the conclusion of negotiations to be enrolled into an IMF program.
Our industry holds many keys to the development of Ghana. It holds the potential to make ECOWAS a prime commercial center of the world, and the power to make AfCFTA the fastest-growing common market. The government owes us a responsibility to partner with us and enact policies that inure to the growth and sustainability of our industry. On our own, we must not relent in our efforts to make this industry great and prosperous. Happy New Year to us all!