Ghana Informal Cross-Border Trade: AfCFTA Hurdles Persist Amid GH¢31B Activity

• Ghana's informal cross-border trade reached GH¢31 billion in the first three quarters of 2025, exceeding formal land trade by 54%.
• Small-scale traders, predominantly women, face arbitrary charges, harassment, goods confiscation, and lengthy delays at border crossings.
• The Ghana Revenue Authority Customs Division has introduced a Simplified Goods Declaration system to streamline procedures and duty payments.
• Despite AfCFTA commitments, a significant disparity exists between continental trade agreements and the practical experiences of traders at Ghana's borders.
• A Joint Stakeholder Action Plan proposes digitalizing border processes and publishing approved fees to formalize trade activities.

Despite its substantial economic contribution, informal cross-border trade in Ghana continues to grapple with significant operational hurdles, undermining the nation's capacity to fully leverage the advantages offered by the African Continental Free Trade Area.

Ghana's informal cross-border trade sector recorded an estimated GH¢31 billion in activity during the first three quarters of 2025, underscoring its significant role in the national economy. This substantial figure, derived from Ghana Statistical Service data, represents a 54 percent increase compared to trade conducted through formal land channels over the same period. Overall, informal trade accounted for approximately six percent of Ghana's total trade volume, highlighting the economic importance of these activities, which largely operate outside conventional formal frameworks.

Despite its substantial economic contribution, informal cross-border trade in Ghana continues to grapple with significant operational hurdles, undermining the nation's capacity to fully leverage the advantages offered by the African Continental Free Trade Area (AfCFTA). Small-scale traders, a demographic predominantly comprising women, frequently encounter complex border procedures, the imposition of undocumented levies, and prolonged transit delays. These issues are further compounded by inadequate infrastructure and limited access to essential trade information, collectively posing considerable `Ghana AfCFTA trade hurdles` for participants in this vital economic segment.

Representatives of cross-border women traders from key entry points such as Elubo, Hamile, Paga, Aflao, and Akanu have consistently reported a range of severe challenges that impede their business growth and ability to integrate into formal trade networks. Their experiences include encountering arbitrary charges, facing harassment, and suffering the confiscation of goods, alongside enduring lengthy delays at border crossings. These `informal cross-border trade challenges Ghana` create an environment of uncertainty and financial strain for those involved.

Furthermore, these traders have identified a critical lack of clear information regarding approved trading procedures and the absence of effective complaint mechanisms as significant deterrents. This informational void and the inability to seek redress discourage their participation in formal trade, perpetuating the informal nature of their operations and limiting their potential for expansion and formalization.

In response to these persistent issues, the Ghana Revenue Authority (GRA) Customs Division has initiated steps to simplify `AfCFTA Ghana border procedures` through the introduction of the Simplified Goods Declaration (SGD) system. This system aims to streamline the process for traders to declare their goods and remit required duties, thereby facilitating smoother cross-border movements. Joseph Mills, a representative from the Customs Division, affirmed the authority's commitment to streamlining border operations to enhance trade facilitation.

However, stakeholders have noted that existing AfCFTA and ECOWAS simplified trade arrangements have yet to provide specific protections tailored for small-scale traders. Dode Seidu, the National Coordinator of the AfCFTA National Coordination Office, highlighted a significant disparity between the commitments enshrined in the continental trade agreement and the daily realities faced by traders at Ghana's borders. He advocated for the implementation of simplified, gender-responsive trade procedures, improvements in border infrastructure, greater accessibility to trade information, and enhanced coordination among various border agencies to bridge this gap.

A stakeholder dialogue, co-organized by the African Capacity Building Foundation (ACBF) and the Ghana National AfCFTA Champions, underscored the imperative of formalizing informal trading activities without inadvertently creating additional barriers for small-scale operators. This recognition has led to the development of a Joint Stakeholder Action Plan, which proposes the digitalization of border processes as a core component of `Ghana trade facilitation plan`. Key initiatives include the introduction of digital travel itineraries and the publication of all approved fees, aiming to enhance transparency and efficiency.

Responsibility for advancing these digital measures has been assigned to the Ghana Immigration Service and GRA Customs. Concurrently, the Ministries of Trade, Agribusiness and Industry, and Gender, Children and Social Protection are tasked with supporting crucial infrastructure improvements, delivering gender-responsive training programs, and empowering traders. The Paramount Chief of Aflao, Torgbui Adzonugaga Amenya Fiti V, further emphasized the need to develop `Aflao border trade issues` by transforming the area into a modern logistics and commercial hub, thereby creating more opportunities, particularly for women and youth, and addressing the broader `Ghana informal cross-border trade AfCFTA` challenges.

Lawyers advising clients involved in cross-border trade in Ghana should note the persistent operational challenges, including arbitrary charges and goods confiscation, faced by informal traders despite AfCFTA commitments. Compliance officers must monitor the implementation of the GRA Customs' Simplified Goods Declaration system and the proposed digitalization of border processes, as these initiatives aim to formalize trade and will impact compliance requirements and dispute resolution for businesses operating in this sector.

Source: Reporting based on insights from Albert Kuzor.