A coalition of business groups have strongly rejected the Ministry of Finance’s recent directive requiring all marine cargo bound for Ghana to be insured by local insurance companies.

The groups, including the Coalition of Concerned Exporters, Importers, Traders and Freight Forwarders, the Food and Beverages Association of Ghana (FABAG), and the Traders Advocacy Group Ghana (TAGG), argue that the policy is unnecessary, anti-competitive, and imposes additional costs on businesses.

The mandate, intended to enforce Section 222 of the Insurance Act, 2021 (Act 1061), aims to retain value within the local insurance industry.

However, the coalition described the policy as an overreach of government authority that interferes with commercial decision-making.

They claimed that local insurers, unable to present competitive products to the shipping industry, are using the mandate to force market penetration.

In a statement, the coalition stressed that marine cargo insurance is a private risk between the buyer, seller, and financier, with no public third-party exposure to justify compulsory coverage.

They further noted that the policy could lead to “double insurance” under the common international trading term, Cost, Insurance, and Freight (CIF), which already requires the seller to procure insurance during shipment.

The groups also highlighted that most trade transactions occur on credit, with suppliers retaining interest in the cargo. Mandating local insurance would therefore create conflicts with standard commercial practices and contractual arrangements.

The coalition argued that previous attempts by the National Insurance Commission to implement similar measures since 2022 have failed to address these concerns and criticised the Ministry of Finance for failing to engage stakeholders before enforcing the new directive.

“The trading community has benefitted from significant cost-saving advantages through the Ministry of Finance’s efforts to stabilise the cedi,” the statement read.

“It would be counterproductive to introduce new cost lines that could undermine these gains.”

While the coalition expressed support for initiatives that strengthen the local insurance sector, it insisted that businesses should choose insurers voluntarily based on viable offerings rather than through mandated compliance.

The groups have called on the Ministry of Finance to withdraw the compulsory local insurance mandate set to take effect on February 1, 2026, until comprehensive stakeholder consultations are conducted to arrive at an optimal policy solution.