GUTA and AGI Applaud Passage of Amended Ghana Shippers’ Authority Bill 2024
Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), and Dr Humphrey Ayim Darke, President of the Association of Ghana Industries (AGI), have expressed their approval of the recently amended Ghana Shippers’ Authority Bill 2024.
Their approval of the bill came after a closed-door meeting on August 1, 2024, with the Ghana Shippers Authority (GSA) and Deputy Minister for Trade and Industry, Kofi Ahenkora Marfo.
GUTA and AGI are among the many major trade associations in the country that have expressed confidence that the newly passed Ghana Shippers’ Authority law will help to address recurrent challenges of unfair and excessive charges that burden traders who use Ghana’s sea and airports as expressed by shippers over the years.
Dr. Obeng speaking to the media following the closed-door meeting on Thursday, highlighted the persistent challenges traders face at the ports, particularly with shipping lines.
He conveyed optimism that the new legislation would empower the GSA to regulate charges, thus providing significant relief to the business community.
“We have always said that the Ghana Shippers’ Authority does not have teeth to bite and we have been propagating the need to have our laws revised given the many challenges we face at the port, especially from the shipping lines that we deal with, particularly in terms of charges and fees.
“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,” he quipped.
Echoing Dr. Obeng’s sentiments, Mr. Darke described the bill as a pivotal measure for ensuring equitable business costs, especially those related to port activities.
He underscored the importance of the GSA’s role as a mediator, essential for guaranteeing fair interactions between businesses and shipping agents.
Further affirming and highlighting the potential for a Legislative Instrument (L.I.) to enhance and perfect the bill’s implementation.
“The Association of Ghana Industries welcomes this Act fully as it seeks to strengthen the business community in two ways. First, 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.
“Second is with regards to the cost of doing business, especially from the point of entry, where the various costs that fit into our production are raised by virtue of the agent’s role. So, as I said earlier, we welcome the Act, and going forward, as explained by the Deputy Trade Minister and the CEO of the GSA, an L.I. will be developed to deepen the mechanisms of implementation of the Act so that where there are grey areas, we will be able to use the L.I. to perfect it,” he remarked.
The high-level meeting between GUTA, AGI, GSA, Ghana National Chamber of Commerce and Industry (GNCCI) and the Deputy Trade Minister, Kofi Ahenkora Marfo, underscored the collaborative efforts between the government and industry stakeholders to address and streamline the challenges within the shipping industry, marking a significant step forward in regulatory reform and business facilitation in Ghana.
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 airports, 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 the 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.
