Wednesday, 15 July

Ghana’s informal border trade hits GH¢31bn, outpaces formal trade with neighbours – GSS

Business
Ghana Border
 

Ghana generated an estimated GH¢31 billion from informal cross-border trade between January and September 2025, exceeding the value of its formal trade with Togo, Burkina Faso and Côte d’Ivoire during the same period, a new report by the Ghana Statistical Service (GSS) has revealed.

The findings, captured in Ghana’s first extended survey on Informal Cross-Border Trade (ICBT), indicate that unrecorded trade represented about six per cent of the country’s total trade over the first three quarters of 2025.

According to the report, informal commercial activity with the three neighbouring countries reached GH¢31 billion, compared with GH¢20.1 billion generated through officially recorded trade channels.

The GSS said the results expose the significant contribution of informal traders to Ghana’s economy, highlighting a sector that has long remained outside official economic records despite its role in sustaining livelihoods, supplying markets and driving economic activity in border communities.

To compile the report, the Statistical Service monitored trade at 206 active border points spanning 10 regions. Data was gathered through direct observations and interviews with traders, with 676 field officers deployed to track the movement of goods between January and September 2025.

The survey found that informal trade consistently accounted for around six per cent of Ghana’s overall trade during the period.

Among the neighbouring countries, Togo recorded the highest proportion of informal trading activity, with unofficial transactions making up between 70.5 and 77.8 per cent of total trade between the two countries. Côte d’Ivoire also recorded high levels of informality, with more than 60 per cent of bilateral trade taking place outside formal channels throughout the three quarters.

The report further showed that Ghana recorded trade surpluses in both formal and informal trade during the review period. However, the surplus from informal trade declined significantly, dropping from GH¢665.3 million in the second quarter to GH¢49.3 million in the third quarter of 2025.

Beyond its economic significance, the GSS believes the findings will help shape policies aimed at improving border governance, supporting small-scale traders and strengthening Ghana’s role under the African Continental Free Trade Area (AfCFTA).

The report recommends simplifying licensing and registration procedures for informal traders, upgrading infrastructure at key border crossings and improving collaboration among institutions such as the Ghana Statistical Service, the Ghana Revenue Authority and the Ghana Immigration Service.

It also calls for increased investment in domestic production and value addition, particularly for products such as rice, cooking oil and livestock, which account for a large share of informal trade.

According to the GSS, sustained monitoring of informal cross-border trade will provide policymakers with more accurate data, helping integrate the sector into national economic planning while recognising its contribution to Ghana's growth.

   

Source: Classfmonline.com/Zita Okwang