Ghana's plan to hike import tariffs may hit pockets and stomachs

The state wants to make importing food like rice and tomatoes more costly. Sylvanus Kwaku Afesorgbor, a University of Guelph associate professor of Agri-Food Trade and Policy, explains why this is a bad idea.

"Ghana, like many other developing nations, relies heavily on imports of food and consumer goods to feed its population. For instance, the country imports 55% of its rice for consumption locally. Its import dependence is primarily a consequence of the production of low-value primary products without substantial value-addition. To forestall over-dependence on foreign goods, the government has proposed a trade restrictive policy via a legislative instrument on 22 major items. It has justified the policy on the grounds that it wants to reduce Ghana’s dependence on foreign goods by making locally produced goods more attractive from a price perspective. In turn, the idea is that this will drive up domestic production.

The list of items includes essential food products such as rice, offal, poultry, cooking oil, fruit juices, noodles and pasta, fish, sugar and canned tomatoes. All are commonly consumed in most Ghanaian households.

But imposing constraints on these food items has the potential to escalate food prices, as set out in my recent paper, prompting concerns about potential threats to food security. Restricting imports without ensuring highquality and competitive domestic products will not lead to consumer preference for locally made goods. What Ghana’s industries need are fewer production constraints and more incentives to compete domestically.

OPPOSITION TO PROPOSAL

Opposition to the proposal emerged from various quarters, including civil society organisations, trade associations and the minority in parliament.