The Ghana Shippers Authority (GSA) has taken a significant step towards addressing the high cost of doing business in Ghana by convening a meeting to brainstorm solutions to delays at the ports. According to Professor Ransford Gyampo, CEO of the GSA, these delays lead to unnecessary demurrage payments, which can be as high as GH¢30 million weekly for Ghanaian importers.
Causes of Port Delays
The delays are often caused by a combination of factors, including.
– Regulatory delays in document processing*: Inefficiencies in processing documents contribute to delays and demurrage charges.
– Arbitrary exchange rates: Some shipping lines charge arbitrary exchange rates, which can increase costs for importers.
– Lack of regulatory oversight: Some international shipping lines resist regulatory oversight, making it challenging to address these issues.
GSA’s Proactive Approach
Under the leadership of Professor Gyampo, the GSA is working to address these challenges. The authority has.
– Convened a meeting with stakeholders: The GSA has brought together stakeholders to discuss the issue and recommend proactive interventions.
– Engaged with top officials: The authority will engage with top officials from stakeholder institutions, including shipping lines, to find solutions.
– Collaborated with the Bank of Ghana: The GSA has worked with the Bank of Ghana to introduce guidelines targeting unfair exchange rate practices by shipping lines and port service providers.
Impact on Businesses
The high cost of doing business in Ghana can have significant implications for businesses, including ²:
– Increased costs: Demurrage charges and arbitrary exchange rates can increase costs for importers, making it challenging for businesses to operate efficiently.
– Threats to investment: The high cost of doing business can discourage investment and lead businesses to consider relocating to more affordable markets.
Next Steps
The GSA’s efforts to address port delays and reduce business costs are ongoing. The authority will continue to engage with stakeholders and work towards finding solutions to these challenges. By addressing these issues, the GSA aims to contribute to President John Mahama’s vision of resetting Ghana and bringing down the cost of doing business.