The Ashanti Business Owners Association (ABOA) has strongly objected to a proposed government policy that seeks to impose mandatory local insurance cover on imported goods from their country of origin to Ghana, warning that the directive could disrupt trade, raise costs, and undermine investor confidence.
In a statement issued and signed by the Executive Secretary of ABOA, Mr Charles Kusi Appiah Kubi, the Association said that while it supports efforts to strengthen Ghana’s domestic insurance industry, the proposed measure presents serious concerns relating to international trade compliance, insurance regulation, cost efficiency, and overall macroeconomic stability.
ABOA noted that international trade transactions are governed by established frameworks such as Incoterms, particularly Cost, Insurance, and Freight (CIF) arrangements, which clearly define insurance responsibilities between buyers and sellers. According to the association, imposing compulsory local insurance overrides these contractual agreements and violates the principle of sanctity of contract, thereby introducing uncertainty into cross-border trade.
The Association further cautioned that the policy could conflict with Ghana’s obligations under international trade agreements, including the World Trade Organisation (WTO) trade facilitation agreements and the African Continental Free Trade Area (AfCFTA). ABOA warned that the directive could be interpreted as a non-tariff barrier, potentially exposing Ghana to reciprocal trade restrictions or formal complaints from trading partners.
On insurance efficiency, the group argued that most imported goods are already covered by valid marine cargo insurance policies issued by internationally rated insurers.
It said forcing importers to acquire additional local insurance would result in double insurance, complicating claims management and creating uncertainties regarding liability, subrogation, and claims settlement jurisdiction.
Economically, ABOA said the additional insurance premiums would increase the landed cost of imports, with the likelihood of higher wholesale and retail prices.
This, it noted, could worsen inflationary pressures and reduce consumer purchasing power, especially in sectors that rely heavily on imported inputs.
The Association also expressed concern that mandatory insurance compliance checks could slow down port operations, increase clearance timelines, and raise transaction costs, counteracting government efforts to improve trade facilitation and port efficiency.
ABOA added that sudden regulatory interventions without adequate stakeholder consultation or transition arrangements could damage Ghana’s ease-of-doing-business reputation and weaken investor confidence, particularly for companies operating under long-term supply and financing agreements.
The Association stated that a sustainable insurance market cannot be built through compulsory measures that distort trade flows and increase systemic costs.
It therefore called on the Government of Ghana, the Ministry of Finance, the Ministry of Trade, Agribusiness and Industry, and the National Insurance Commission (NIC) to suspend the proposed policy and engage stakeholders to develop a more technically sound and economically efficient alternative.
