20% Excise Duty on Natural Juices Threatens 127,000 Jobs, $1bn Export Potential – Chamber of Agribusiness Ghana
The Chamber of Agribusiness Ghana (CAG) has warned that the 20 percent excise duty imposed on 100 percent natural fruit juices is inflicting severe damage on Ghana’s agro-processing value chain, threatening up to 127,000 jobs and wiping out a potential annual export opportunity of about $1 billion.
In a technical analysis released on February 4, 2026, the Chamber said the tax introduced as a public health measure, has instead reduced capacity utilisation in juice processing factories to between 30 and 45 percent, well below the optimal 70–85 percent range. According to CAG, the slowdown has curtailed demand for locally produced fruits, with ripple effects across farming communities in the Eastern, Volta and Central regions.
Chief Executive Officer of CAG, Anthony Kofituo Morrison, said the policy is undermining farmer livelihoods, particularly among women who make up an estimated 55–60 percent of fruit producers. He noted that reduced processing volumes have led to price declines of 15–30 percent at the farm gate, post-harvest losses of up to 40 percent and the collapse of contract farming arrangements that previously offered stable markets and extension support.
Beyond domestic impacts, the Chamber argued that the duty has eroded Ghana’s competitiveness in the fast-growing global market for natural and functional beverages, where demand is expanding at 6–8 percent annually. CAG estimates that Ghana could earn between $700 million and $1 billion each year from exports of pineapple juice, citrus concentrates, coconut water and functional juice blends if supportive tax policies were in place.
The Chamber further pointed to a policy inconsistency with international best practice, noting that countries such as South Africa, the Philippines and Barbados exempt 100 percent natural fruit juices from sugar-sweetened beverage taxes, while targeting drinks with added sugars and artificial sweeteners. CAG said Ghana’s approach has instead favoured imported concentrates and artificial beverages, weakening import substitution efforts and increasing pressure on the cedi.
On public health, the Chamber described the measure as counterproductive, arguing that higher prices for nutritious juices are pushing consumers toward cheaper, less healthy alternatives. It also highlighted a conflict with the government’s 24-Hour Economy initiative, as subdued demand has made multi-shift operations in juice processing economically unviable.
CAG is therefore calling for the immediate zero-rating or exemption of 100 percent natural fruit juices from the excise duty, while maintaining higher rates on beverages with added sugars. The Chamber also proposed medium- to long-term incentives to support agro-processing investments, export market development and stronger farmer–processor linkages.
According to the analysis, removing the duty could yield a net fiscal gain of between GHS 270 million and GHS 560 million annually through higher employment taxes, corporate income taxes and reduced health costs, outweighing the estimated GHS 80–120 million in foregone excise revenue.
