GH¢31bn informal cross-border trade faces hurdles despite AfCFTA commitments

Ghana's informal cross-border trade, valued at an estimated GH¢31 billion for the first three quarters of 2025, continues to grapple with substantial obstacles, casting doubt on the country's potential to maximize the advantages of the African Continental Free Trade Area (AfCFTA). Small-scale traders, notably women, encounter intricate border protocols, undocumented fees, extended transit delays, subpar infrastructure, and restricted access to trade information.

According to the Ghana Statistical Service, these informal transactions were approximately 54 percent greater than those conducted through formal land channels during the period, accounting for roughly six percent of Ghana's overall trade.

During a stakeholder dialogue in Aflao, located in the Volta Region, representatives of cross-border women traders from Elubo, Hamile, Paga, Aflao, and Akanu voiced their ongoing struggles in expanding businesses and engaging fully in formal trade networks. These traders recounted instances of arbitrary charges, harassment, goods confiscation, and lengthy border crossing delays.

They also pointed to a lack of information on approved trading procedures and the absence of effective complaint mechanisms as factors that dissuade their involvement in formal trade.

The Ghana Revenue Authority (GRA) Customs Division acknowledges the need for simplification by launching the Simplified Goods Declaration (SGD) system, enabling traders to declare goods and pay duties via more streamlined processes. Joseph Mills, a representative of the Customs Division, stated that the authority is striving to streamline border operations to encourage trade.

However, stakeholders emphasized that while AfCFTA and ECOWAS simplified trade arrangements exist, they have yet to offer specific safeguards for small-scale traders. Dode Seidu, the National Coordinator of the AfCFTA National Coordination Office, highlighted a significant chasm between the commitments under the continental trade agreement and the day-to-day realities faced by traders at Ghana's borders.

He urged for simplified, gender-sensitive trade procedures, enhanced border infrastructure, accessible trade information, and stronger coordination among border agencies.

The Aflao stakeholder dialogue, organized by the African Capacity Building Foundation (ACBF) alongside the Ghana National AfCFTA Champions, also underscored the necessity of formalizing informal trading activities without introducing further barriers for small-scale operators. The resulting Joint Stakeholder Action Plan outlines plans to digitize border processes, including digital travel itineraries and publication of approved fees.

The Ghana Immigration Service and GRA Customs bear responsibility for these developments, with the Ministries of Trade, Agribusiness and Industry, and Gender, Children and Social Protection expected to assist with infrastructure enhancements, gender-sensitive training, and trader empowerment. The Aflao Paramount Chief, Torgbui Adzonugaga Amenya Fiti V, also called for converting Aflao into a modern logistics and commercial hub to generate more opportunities for women, young people, and businesses in border communities.

The dialogue, funded by the African Development Bank's CADAST program and implemented with ESAMI-TRAPCA, aims to synchronize Ghana's trade and border governance commitments with the challenges encountered by traders. Stakeholders assert that addressing these issues through transparent fees, simplified procedures, better infrastructure, and accessible grievance mechanisms will be vital to ensuring small-scale traders reap the benefits of AfCFTA.