The Food and Beverages Association of Ghana (FABAG) has strongly opposed the Ghana Standards Authority’s (GSA) newly introduced Ghana Easy Pass Programme, warning that the policy will increase the cost of doing business, drive up consumer prices and undermine government’s efforts to improve the country’s business environment.
In a statement issued on Monday, July 6, the association described the mandatory pre-export conformity verification regime for imported goods as an unnecessary regulatory burden on businesses already struggling with rising operational costs.
FABAG said it “expresses its strongest condemnation of the decision by the Ghana Standards Authority (GSA) to introduce the Ghana Easy Pass Programme, a mandatory pre-export conformity verification regime for imported products destined for Ghana.”
Existing Agencies Already Perform the Role
The association questioned the need for an additional layer of regulation, arguing that existing state institutions are already mandated to ensure the quality and safety of imported products.
“It is difficult to understand why government would seek to impose another layer of bureaucracy and cost on importers when existing regulatory institutions are already adequately mandated to ensure product safety and standards,” the statement said.
According to FABAG, agencies such as the Food and Drugs Authority (FDA), the Ghana Standards Authority (GSA), the Ghana Revenue Authority (GRA) and the Ghana Ports and Harbours Authority (GPHA) already conduct inspections, testing and quality assurance checks on imported goods.
“If there are operational challenges within these institutions, they should be strengthened, not bypassed through the introduction of another costly programme,” the association argued.
“Another Tax by Another Name”
FABAG maintained that the Ghana Easy Pass Programme would impose significant additional costs on importers.
“This policy is simply adding another tax by another name,” the association stated.
It explained that businesses would be required to pay new certification fees, incur additional administrative expenses, contend with shipment delays and meet higher compliance costs before goods are exported to Ghana.
According to the association, these additional costs will ultimately be transferred to consumers.
“These costs will inevitably be passed on to the Ghanaian consumer through higher prices,” it warned.
Businesses Already Under Pressure
FABAG noted that businesses are still recovering from previous regulatory reforms and rising operating expenses.
“The ordinary Ghanaian will pay the price. Businesses have barely recovered from the introduction of the AI Publican system and other regulatory reforms that have significantly increased compliance obligations,” the statement said.
It added that increases in electricity and water tariffs, high interest rates, exchange rate volatility, rising transport costs and expensive borrowing have already placed considerable pressure on the private sector.
“The private sector cannot continue to absorb an endless stream of new costs without serious consequences for investment, employment and consumer prices,” the association cautioned.
Calls for Policy Reversal
FABAG also expressed disappointment that government had revived a policy similar to one that businesses had previously rejected during stakeholder consultations.
“What is even more surprising is that the business community overwhelmingly rejected similar conformity verification programmes in the past after extensive consultations. We therefore find it regrettable that government seeks to revive a policy that businesses have consistently opposed,” it stated.
The association further questioned government’s broader economic policy direction.
“Government cannot genuinely speak about improving the ease of doing business while simultaneously introducing measures that make doing business more expensive.
“Government cannot seek to reduce inflation while introducing policies that directly increase the cost of imported raw materials and finished products. Government cannot encourage investment while creating additional layers of regulatory costs and uncertainty,” it added.
FABAG appealed directly to President John Dramani Mahama to intervene and suspend implementation of the Ghana Easy Pass Programme.
“FABAG respectfully calls on His Excellency President John Dramani Mahama to intervene immediately and suspend the implementation of the Ghana Easy Pass Programme,” the statement said.
The association urged the President to direct the Ghana Standards Authority to withdraw the policy and engage businesses in consultations to develop alternative measures that protect consumers without imposing avoidable costs on importers.
FABAG also called on business associations, importers, manufacturers and distributors to unite in opposing policies that increase the cost of doing business.
“The time has come for government to listen to the voice of businesses. Our economy does not need more bureaucracy. Our businesses do not need more costs. Our consumers do not need higher prices. Ghana needs policies that encourage enterprise, not policies that punish it. This is becoming too much,” the association concluded.
