IEAG Raises Alarm Over Mandatory Local Cargo Insurance Directive, Cites Lack of Consultation and Economic Risks

The Importers and Exporters Association of Ghana (IEAG) has expressed strong concern over a new government directive mandating local cargo insurance for all commercial imports, warning that the policy was introduced without stakeholder engagement and could disrupt trade, increase costs, and expose importers to serious financial risks.

In a statement issued on January 22, 2026, the Association disclosed that the Ministry of Finance has directed the Ghana Revenue Authority (GRA) and the Bank of Ghana (BoG) to enforce a mandatory Local Cargo Insurance policy beginning February 1, 2026, pursuant to Section 222 of the Insurance Act, 2021 (Act 1061)

IEAG ON LOCAL INSURANCE POLICY …

While acknowledging government’s objective of strengthening the local insurance industry and retaining insurance premiums within the Ghanaian economy, the IEAG said the manner in which the directive was announced has raised deep concerns among importers and exporters, who are expected to bear the full cost and operational burden of the policy.

No Stakeholder Engagement

According to the Association, neither the Ministry of Finance, the GRA, nor the Bank of Ghana engaged importers and exporters prior to announcing the directive, despite their role as the primary stakeholders and direct payers of the insurance premiums.

The IEAG noted that its members were not consulted or sensitised on critical implementation issues, including how premiums would be determined, the scope of insurance coverage, claims settlement procedures, and whether local insurers have the capacity to underwrite high-value or specialised international cargo. The Association also raised concerns about how the policy would align with existing international trade and insurance arrangements governed by globally recognised Incoterms.

“It is therefore alarming that importers are learning through a public announcement that a policy of this scale is expected to take effect in less than a month,” the statement said.

Capacity and Claims Concerns

From the perspective of importers and exporters, the IEAG outlined several unresolved issues that could expose businesses to significant risk. Among them is uncertainty about the financial strength and reinsurance backing of local insurance companies to handle large-volume and high-risk international cargo.

The Association warned that inadequate capacity could lead to delayed or unpaid claims, leaving importers financially exposed. It also pointed to the absence of clarity on claims processing timelines, dispute resolution mechanisms, and safeguards against prolonged bureaucratic delays.

Conflict With Global Trade Practices

The IEAG further cautioned that the directive could conflict with long-standing international trade practices. Many imports into Ghana, the Association noted, are already insured under established global insurance arrangements tied to contractual agreements with foreign suppliers, financiers, and shipping partners.

Abruptly imposing a local insurance requirement without clear transition measures, the IEAG said, risks contractual disputes and disruptions within global supply chains.

Inflationary Pressures and Port Risks

Beyond operational concerns, the Association warned of potential inflationary effects. Without transparency on pricing, mandatory local cargo insurance could significantly raise the cost of doing business, costs that are likely to be passed on to consumers.

The timing of the directive has also raised alarm. Importers are already preparing for the rollout of new AI-related and digital trade facilitation systems by the GRA scheduled for February 1, 2026. Introducing another major compliance requirement simultaneously, the IEAG argued, could create confusion, congestion, and unnecessary operational risks at Ghana’s ports.

Call for Pause and Dialogue

The IEAG reminded government that past policy decisions taken without broad stakeholder consultation have often resulted in public dissatisfaction and economic disruption.

Appealing directly to the John Dramani Mahama–led government and the Ministry of Finance under Dr. Cassiel Ato Forson, the Association urged authorities to align the directive with the administration’s stated “resetting agenda” by adopting a more transparent, inclusive, and consultative approach.

The IEAG has therefore called on the Ministry of Finance, the Ghana Revenue Authority, the Bank of Ghana, and the National Insurance Commission to pause the implementation timeline and urgently engage industry stakeholders in meaningful consultations before enforcement begins.

The Association said it remains committed to constructive dialogue and is ready to work with government to develop solutions that protect national interests without unfairly burdening importers or undermining trade facilitation.