Duplication of functions impede trade — GNCCI report
A new study at the country’s ports has identified duplication of functions by some Ministries, Departments and Agencies (MDAs) as major challenges impeding ease of doing business at the ports.
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The report gives details on how activities of over 16 different state agencies are hampering smooth business operations and at the same time, making the ports uncompetitive to attract neighbouring landlock countries.
In the words of Ghana Institute of Freight Forwarders (GIFF) as captured by the report stated “the various agencies at the port cause a lot of delays, particularly on import, leading to the payment of demurrage and excess rent.”
The report, conducted by the Ghana National Chamber Commerce and Industry (GNCCI) was released at a stakeholders’ workshop by the chamber on Thursday, August 24, in Accra.
The report, which was funded by the Business Advocacy Challenge (BUSAC), was on challenges associated with doing business at the country’s ports and was dubbed ‘Situational Analyses of Tema and Takoradi Seaports and Kotoka International Airport.’
It was also aimed at evaluating the operational challenges and bottlenecks associated with doing business at the country’s ports.
The findings
Presenting the findings of the report, the Head of Research and Advocacy of the chamber, Mr Julius Bradford Lamptey, said the report identified excessive fees and charges as one of the top challenges impeding ease of doing business at the ports.
It also explained how official and unofficial charges were hampering smooth business operation and at the same time, robbed the country of revenue and increased trade volumes.
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For instance, the report identified that importers were expected to pay over four different charges, fees and taxes when using the ports in the country.
He said users of the ports were asked about monies shippers usually paid and the figures obtained ranged between GH¢1 to GH¢650,000.
“These monies are paid to various entities – private and public – that are involved in the business of facilitating imports and exports. When asked to describe the fees, charges and taxes at the port, a little over one-third of the businesses surveyed indicated that they were too high,” he said.
He explained that assessment of high cost of doing business at the port was also confirmed by the results of the separate interviews with both state and private institutions.
The Ghana Institute of Freight Forwarders, for example, described the cost of doing business at Ghana’s ports as “too high and unbearable”.
For John Bitar, a freezone company engaged in the export of wood products, one of the major challenges facing it was the payment of port rent charges to Ghana Ports and Harbours Authority (GPHA).
The study recommended that the government must expand all three ports in the country as present facilities were overstretched given the volumes of trade recorded in recent times.
Recommendations
The President of the GNCCI, Nana Appiagyei Dankawoso, recommended that more equipment, such as cranes and forklift, was needed to reduce pressure on existing equipment. Expansion of the physical space would also help address the perennial issue of congestion at the ports.
“However, trade has expanded over the last few years beyond the physical space of the ports. The three main ports studied under this report are all undergoing serious expansion works.”
“It is obvious that the ports in Ghana need expansion both in terms of facilities and physical space available for port expansion. Currently, all the three ports are undergoing expansion works. The expectation is that the expansion will address the costly congestions at the ports,” he said.
Going forward, the president assured that the chamber was resolute in delivering targeted business support services towards improving private sector performance.
“I wish to emphasise that the chamber is a strategic partner of the government and your association with us, given our long-standing tradition of promoting and protecting the commercial and industrial interests in the country, adds value to your businesses,” he added. — GB