Economist and Academic City University lecturer, Paul Appiah-Konadu, has cautioned that the government’s directive banning land transit goods could negatively affect trade relations among African countries.
Speaking via Zoom on UTV, Dr. Appiah-Konadu said the directive risks weakening the growing intra-Africa trade partnerships that Ghana shares with several neighboring nations.
He acknowledged the government’s concerns over revenue losses due to undeclared goods but argued that a blanket ban may not be the most effective solution.
“One reason cited by the minister for the ban is that many imported goods transported through land borders are not properly declared, making it difficult for the government to collect the appropriate taxes,” he explained.
However, Dr. Appiah-Konadu suggested that authorities should focus on improving transparency and strengthening valuation and monitoring systems instead of imposing a ban.
He recommended leveraging modern technologies, including artificial intelligence, to address the challenge.
“With artificial intelligence, authorities can scan containers to determine the goods inside and apply the appropriate taxes,” he said.
Dr. Appiah-Konadu also warned that banning land transit goods could have unintended consequences, including encouraging smuggling, as traders unable to use legitimate routes may resort to illegal methods to move their goods across borders.
He therefore urged the government to explore alternative measures that will both protect state revenue and sustain Ghana’s trade relations with other African countries.
