Government starts a process to review demurrage policy at ports

The government has started a process to review the demurrage policy at ports to ensure that shippers do not suffer undue delays. 

When completed, the review is expected to relieve shippers of the unfair financial burden of port delays caused by system failures, weekends and holidays in the cargo clearance process.

The review is being undertaken by the Ministry of Trade, Agribusiness and Industry (MoTAI); the Ministry of Transport, the Ghana Ports and Harbours Authority (GPHA) and other key stakeholders.

The initiative is part of a broader effort to enhance the efficiency of key agencies, focusing on the enforcement of existing laws, upgrading digital systems and simplifying customs procedures.

“We are fully aware of the real concerns faced by exporters– demurrage charges on weekends and holidays.

“We understand your concerns regarding demurrage fees incurred when ports are closed, which is very absurd.

Exporters should not be penalised for system delays which are not their fault,” the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, said at the Exporters Forum in Accra yesterday.

Forum

Organised by FirstBank Ghana, the forum was organised in collaboration with the Ghana Export Promotion Authority (GEPA) and the African Import and Export Solutions.

It brought together key export ecosystem players who deliberated on challenges, opportunities and best practices to boost the country’s export growth.

With approximately 300 attendees, including exporters, business leaders and other industry stakeholders, the forum facilitated the sharing of insights, forming new partnerships and exploring innovative solutions to overcome the obstacles hindering the country’s export performance.

Commitment

Mrs Ofosu-Adjare said the government was committed to strengthening the export capacity of Ghanaian businesses through the Accelerated Export Development Advisory Committee, which is chaired by the President.

She said implementation of the National Export Development Strategy (NEDS) would focus on building the capacity of exporters, targeted training, improving access to international markets and promoting valid addition across key sectors.

The minister said the government aimed to promote traditional export earnings from $3.5 billion annually to at least $10 billion by 2030.

“This will be achieved through prioritising value addition, value extension and economic diversification.

“The cedi’s stability creates a win-win situation, ultimately driving economic growth and development in the country,” she added.

SME contribution

The Managing Director/Chief Executive Officer of FirstBank Ghana, Victor Yaw Asante, said SMEs played a key role in the country’s economy, contributing significantly to job creation and national Gross Domestic Product (GDP).

He said empowering SMEs would, therefore, ignite a robust ecosystem that would fuel economic growth, stability and prosperity for all citizens.

“At FirstBank, we are dedicated to enhancing the export capacity of SMEs, enabling them to access and thrive in global markets.

“We believe that by equipping these businesses with the right tools and resources, we can elevate their profiles on the international stage,” Mr Asante said.

He added that FirstBank was offering an array of financial products designed to facilitate smooth transactions in global markets.

“Our offerings include Letters of Credit, Local Purchase Order (LPO) Financing, Contract Financing, and Export Financing.

Each product is crafted to ensure that our clients can navigate the complexities of international trade with confidence,” Mr Asante added.

The Head of SME and Affluent Banking at FirstBank Ghana, Enoch Adams, also said that the forum was a testimony to the commitment to driving the country’s export capabilities to strengthen its position in the global marketplace.