A coalition of trade and business associations has opposed a new directive from the Ministry of Finance requiring all marine cargo destined for Ghana to be insured exclusively with local insurance firms.
The coalition, comprising the Coalition of Concerned Exporters, Importers, Traders and Freight Forwarders, the Food and Beverages Association of Ghana (FABAG), and the Traders Advocacy Group Ghana (TAGG), said the policy imposes an unnecessary financial burden on businesses and interferes with normal commercial practices.
The directive aims to enforce Section 222 of the Insurance Act, 2021 (Act 1061), but the groups argue it will increase operational costs rather than strengthen the trading environment.
In a statement signed by Convener Michael Obiri-Adjei, the coalition said marine cargo insurance is a private commercial risk arrangement between buyers, sellers, and financiers, and does not present a public third-party risk that justifies compulsory regulation.
“Mandatory insurance is only justified 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 statement said.
The coalition warned that the directive could give local insurers an unfair advantage by limiting competition. They argued that forcing traders to insure locally—even when foreign insurers offer better pricing or coverage—would push up costs and eventually lead to higher prices for consumers.
The groups also highlighted practical challenges in the shipping industry, noting that most international trade operates under Cost, Insurance, and Freight (CIF) terms, where suppliers already procure insurance. In credit-based transactions, suppliers often retain ownership of goods, making it impractical for local traders to dictate insurance arrangements.
While commending recent fiscal measures that have stabilised the cedi, the coalition cautioned that the insurance mandate could undermine these 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 in developing a more practical marine insurance policy framework.
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