‘Suspend it now’ – FABAG appeals directly to Mahama to halt new import verification programme

The Food and Beverages Association of Ghana (FABAG) has called on President John Dramani Mahama to immediately suspend the implementation of the Ghana Easy Pass Programme, warning that the new import verification system will significantly increase the cost of doing business and lead to higher prices for consumers.

In a strongly worded statement issued on Monday, July 6, the association criticized the Ghana Standards Authority (GSA) for introducing the mandatory pre-export conformity verification programme, arguing that it places an unnecessary financial and administrative burden on importers at a time when businesses are already facing severe economic challenges.

FABAG said it "expresses its strongest condemnation" of the decision to introduce the Ghana Easy Pass Programme, which requires imported goods to undergo mandatory conformity verification before they are shipped to Ghana.

According to the association, the policy duplicates the responsibilities of existing state regulatory institutions and creates an additional layer of bureaucracy without providing any clear economic benefit.

The association questioned the rationale behind the new programme, stating that several government agencies are already mandated to inspect, test and certify imported products entering the country.

"It is difficult to understand why government would seek to impose another layer of bureaucracy and cost on importers when existing regulatory institutions are already adequately mandated to ensure product safety and standards," FABAG stated.

FABAG argued that institutions such as the Food and Drugs Authority (FDA), the Ghana Standards Authority (GSA), the Ghana Revenue Authority (GRA) and the Ghana Ports and Harbours Authority (GPHA) already have legal mandates to regulate the safety and quality of imported goods.

Rather than creating a new verification regime, the association believes government should invest in strengthening the capacity and efficiency of these institutions if operational gaps exist.

"If there are operational challenges within these institutions, they should be strengthened, not bypassed through the introduction of another costly programme," the statement added.

FABAG warned that the Ghana Easy Pass Programme would substantially increase the overall cost of importing goods into the country.

According to the association, importers would be required to pay additional certification fees, bear new administrative charges, comply with extra documentation requirements and potentially experience shipment delays before products are exported to Ghana.

The association described the programme as "another tax by another name," arguing that businesses would have little choice but to transfer these additional costs to consumers through higher prices.

FABAG cautioned that the policy could worsen inflationary pressures at a time when households are already struggling with the rising cost of living.

The association noted that many businesses are still recovering from previous regulatory reforms and continue to grapple with high operating expenses.

Among the major challenges facing the private sector are rising electricity and water tariffs, elevated interest rates, exchange rate volatility, expensive transportation costs and limited access to affordable credit.

"The private sector cannot continue to absorb an endless stream of new costs without serious consequences for investment, employment and consumer prices," FABAG warned.

FABAG also expressed surprise that government had revived a policy similar to proposals that were previously rejected by the business community following stakeholder consultations.

According to the association, the concerns raised during those earlier discussions remain valid and have not been adequately addressed.

The association believes reintroducing the programme ignores the concerns of importers, manufacturers and other private sector operators who depend on efficient and cost-effective trade procedures.

FABAG argued that implementing the Ghana Easy Pass Programme runs contrary to the government's stated commitment to improving Ghana's business environment.

The association said government cannot simultaneously promote ease of doing business while introducing policies that increase regulatory costs and administrative burdens.

It further maintained that additional import costs would undermine efforts to reduce inflation, encourage local production, attract investment and create sustainable employment opportunities.

FABAG has appealed directly to President John Dramani Mahama to intervene before the policy takes effect.

According to the association, the President has repeatedly assured the private sector that his administration would implement policies aimed at supporting businesses, boosting production and creating jobs.

FABAG believes the Ghana Easy Pass Programme sends the opposite signal by making imports more expensive and increasing uncertainty for investors.

The association has therefore urged the President to direct the Ghana Standards Authority to suspend the implementation of the programme and initiate fresh consultations with business associations and other key stakeholders.

FABAG has also called on chambers of commerce, manufacturers, importers, distributors, business associations and the wider private sector to unite in opposing the policy.

The association insists Ghana's economy requires policies that reduce business costs, encourage enterprise and stimulate economic growth rather than introducing additional regulatory barriers.

"Our economy does not need more bureaucracy. Our businesses do not need more costs. Our consumers do not need higher prices. Ghana needs policies that encourage enterprise, not policies that punish it," the association concluded.