GUTA, AGI Hold Closed-Door Meeting with GSA and Trade Ministry on New Shippers Authority Bill
The Ghana Union of Traders Association (GUTA), the Association of Ghana Industries (AGI) and the Ghana National Chamber of Commerce (GNCCI) on Thursday, August 1, 2024, convened a closed-door meeting with the Ghana Shippers Authority (GSA) and the Ministry of Trade and Industry.
This high-level meeting was convened following the recent passage of the Ghana Shippers Authority Bill 2024 by Parliament on July 29, 2024.
The primary focus was to discuss the operationalization of the law and strengthen its implementation.
GUTA President Dr. Joseph Obeng, speaking to the media following the high-level meeting, emphasized the longstanding challenges faced by traders at the port, specifically citing issues with shipping lines.
He expressed optimism that the new law will positively impact the cost of doing business in Ghana.
“The cost of doing business in this country is just too high and so if this Act seeks to empower the Ghana shippers’ authority to make sure that some controls are brought in so that they can approve of some of these charges or disapprove of them so that we can have the respite to do our business and also grow, then that’s a welcoming development and that makes the Act very important for us and we support,” Dr. Obeng remarked, highlighting the necessity of the amended bill for economic growth and sustainability.
President of AGI, Dr Humphrey Darke, echoed similar sentiments, describing the bill as a crucial step towards creating equity in business costs, particularly those arising from port activities.
He underscored the role of the GSA as a mediator, poised to ensure fair dealings between businesses and shipping service providers.
“The Association of Ghana Industries welcomes this act fully as it seeks to strengthen the business community. For the GSA, it gives them the capacity to engage with our agents in a very equitable manner. The role of the Ghana Shippers’ Authority is well defined in the Act and they become more like a referee to aid us create the equity that is needed,” Mr Darke stated, emphasizing the potential for a Legislative Instrument (L.I.) to refine and perfect the bill’s implementation.
Deputy Minister for Trade and Industry, Kofi Ahenkora Marfo, hailed the meeting as highly successful. He underscored the importance of updating the nearly 50-year-old legislation to reflect the current dynamics of the shipping industry.
The Deputy Minister assured continued engagement with stakeholders in the trading community to address any challenges within the Act and foster a unified shipping industry framework.
The passage of the Ghana Shippers Authority Bill 2024 marks a significant milestone in the nation’s efforts to enhance regulatory frameworks and support the business community.
The ongoing dialogue between Government and industry stakeholders is expected to play a crucial role in the effective implementation of the amended legislation.
Background
Parliament passed the Ghana Shippers’ Authority Bill, 2024, into law yesterday, Monday, 29th July 2024 following its successful 3rd reading on the floor of the House.
Among others, the law which amends its 50 years old establishment law, NRCD 254 (1974) will regulate commercial activities of shippers, and will primarily address the issue of unfair and excessive charges that burden traders who use Ghana’s sea and air ports, as well as land borders to ply their international trade.
It will introduce transparency in the determination of port fees and charges, and will by that, ensure that there is accountability in the legal movement of international trade cargo across all of borders of Ghana.
It further aims to make Ghana a preferred transit trade channel for her landlocked neighbours, Burkina Faso, Mali, and Niger; and overall, enhance the sector’s revenue contribution to the national purse.
Empowered by the new law, the Ghana Shippers’ Authority will be enabled to better adapt to emerging trends and complexities within the shipping and logistics industry, protect the interests of shippers and shipping service providers, and improve its regulatory oversight of the entire industry.
According to the Committee on Roads and Transportation’s report on the Bill which was passed into law, one of the fundamental reasons for its successful passage is the need to ensure effective regulation of the shipping and logistics sector to guarantee fair pricing and charges for all stakeholders, especially importers and exporters.
The report highlights that the Bill will empower the Ghana Shippers’ Authority to facilitate the charging of fair fees at the ports and borders, and through that, promote the participation of local firms in the provision of services in the sector.
Moving for the approval of the Bill, the Minister for Transport, Kwaku Ofori Asiamah expressed satisfaction and indicated that, the Bill when passed will enhance the potency of the Ghana Shippers’ Authority in the discharge of its statutory mandate.
The Committee noted that exorbitant charges imposed by some service providers, especially at the sea and air ports hinder business growth, and contribute to the needless rise in prices of goods and services. The new law is expected to enhance transparency and accountability, and invariably drive improved revenue generation and collection for national socio-economic growth.
Ghana Shippers’ Authority (GSA) was established 50 years ago by NRCD 254 (1974) to regulate the commercial activities of shippers and shipping service providers in the shipment, storage, and delivery of international trade cargo by sea, air, and land. Over the last five (5) decades, GSA has driven compliance with established standards and guidelines in the commercial shipping sector in Ghana, and through Ghana to Burkina Faso, Niger, and Mali.
Since 1974, GSA has spearheaded the development, monitoring, and facilitation of transit trade through Ghana’s corridors. The law as passed will enable a more effective regulation of transit trade, and thereby balance the interests of shippers and service providers for enhanced efficiency and competitiveness in international trade.
Commenting on the momentous occasion, Chief Executive Officer of GSA, Kwesi Baffour Sarpong said that, the amended law is a huge step in the right direction, but it is not a magic silver bullet. GSA is poised for a collaborative approach to dealing with any issues that may arise, given their longstanding cordial relationships with all the stakeholders. He assured all stakeholders to rest assured that, the enforcement of the law will be fair and representative of the interests of the shipping industry; and will be a major win for Ghana in her quest to become the preferred trade hub in the region.
Kwesi Baffour Sarpong expressed gratitude to all stakeholders in the industry, including trade associations, shipping service providers, shipping lines, sister state agencies, the Attorney-General’s Department, and the Ministry of Transport, the superintending Ministry of GSA for their varied roles, invaluable contributions, and tireless efforts in putting together the Bill. He thanked the President of the Republic, His Excellency, Nana Addo-Dankwa Akufo-Addo, Cabinet, and Parliament for their commitment to a cause that holds immeasurable benefits for all stakeholders of the industry, and stands as a conduit for better fortunes for mother Ghana.
Mr. Sarpong applauded and paid glowing tribute to the Board, Management, and staff of GSA, both present and past whose indefatigable input has brought the new law into being.
