Decline in Port traffic raises revenue concerns for Government
The Ghana Ports and Harbours Authority (GPHA) has raised concerns over the decline in traffic at the country’s various ports.
According to reports the phenomenon began in mid-2022 and has persisted through the first quarter of 2023 without any signs of improvement. This is alarming news for a country that relies heavily on trade and commerce as a key contributor to its economic growth.
The drop in port traffic is of particular concern given the current financial constraints faced by the Ghanaian government. With the country already grappling with a widening budget deficit and high levels of public debt, any further decline in revenue generation could potentially deepen the economic challenges facing the country.
In light of these concerns, the Ghana Ports and Harbours Authority recently organised a meeting with key stakeholders to discuss the causes of the decline in port traffic and identify potential solutions to address the issue. The meeting, which took place on Thursday, March 30, provided an opportunity for stakeholders to share their perspectives on the situation and identify actionable steps to reverse the decline in traffic.
One of the key factors contributing to the decline in port traffic, according to the Executive Secretary of the Importers and Exporters Association, Samson Asaki Awingobit, is inflation. Awingobit highlighted the impact of inflation on the exchange rate last year, which led to a reduction in the volume of cargo at the ports. Additionally, the total reversal of the benchmark values by the government has also contributed to the decline in port traffic.
The decline in port traffic is a worrying trend for Ghana, given the country’s reliance on trade and commerce for economic growth. The ports serve as vital conduits for international trade and the movement of goods and services. Any disruptions in port operations or a decline in traffic can have a ripple effect on the economy, potentially leading to reduced revenues and economic growth.
It is encouraging that the Ghana Ports and Harbours Authority has taken proactive steps to address the issue by engaging with stakeholders and identifying potential solutions. However, it is important to note that reversing the decline in port traffic will require a coordinated effort by all stakeholders, including the government, private sector actors, and international partners.
The decline in port traffic in Ghana is a concerning trend that requires urgent attention. Given the importance of trade and commerce to the country’s economic growth, it is crucial that all stakeholders work together to identify and implement effective solutions to reverse the trend. The government must also prioritise investments in infrastructure and policies that support trade and commerce to ensure that the country’s ports continue to serve as vital conduits for economic growth.
