The Bank of Ghana (BoG) is warning exporters that they must repatriate their profits back to Ghana. Exporters must repatriate merchandise export proceeds through a bank, unless they have retention arrangements, as per the Foreign Exchange Act, 2006, Act 723, and the corresponding Letter of Commitment (LOC). Therefore, 100% of the export value of all merchandise exports is expected to be repatriated by exporters. Regrettably, it appears that some exporters are not following these rules.
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The Bank of Ghana's Assistant Director of the Banking Department, Mr. Eric Kweku Hammond, underlined the serious penalties that exporters who break the law may have to endure. This entails a 5,000 penalty unit fine, translating to Ghc60,000, or even imprisonment for a term of up to ten years, or potentially both penalties.
At a forum organized by the Ghana Shippers’ Authority (GSA) and the Bank of Ghana, Mr. Kwaku Hammond reiterated the significance of adhering to these repatriation regulations. He stressed that such compliance is vital for building reserves, strengthening the local currency, and ultimately boosting trading activities, as well as facilitating Ghana’s transformation agenda.
Moreover, Mr. Kwaku Hammond reassured exporters that the Bank of Ghana is open to collaborating with them to address any challenges encountered within the system. He underscored the significance of the Letter of Commitment (LOC) and expressed confidence that if properly followed, the expressed challenges by the exporters would not arise.
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In line with this, Charles Darling Asiedu Sey, the Tema branch Manager of the Ghana Shippers Authority, highlighted the specific purpose of the forum—to address the unique challenges faced by exporters. He emphasized the pivotal role of exports in national development, emphasizing its contribution to the Gross Domestic Product (GDP), job creation, and government revenue. He also underlined its importance in shaping the economy, fostering international trade relations, and positioning Ghana on the global stage.
Furthermore, Charles Sey articulated the ambitious path outlined in the National Export Development Strategy (NEDS) for the next decade. This strategy envisions substantial growth in non-traditional exports (NTEs) from 2.8 billion dollars in 2020 to a considerable 25.3 billion dollars in 2029, accompanied by structural transformation aimed at positioning Ghana as a competitive, export-led, industrialized economy.
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He stressed the partnership between the Ghana Shippers' Authority (GSA) and service providers to elevate the quality of shipping services by reviewing export-related policies, simplifying procedures, reducing bureaucracy, and creating a more conducive environment for businesses to thrive. Additionally, Mr. Sey called for a continuous evaluation of the export value chain to identify bottlenecks, enhance Ghana’s exportable capacity, and facilitate trade with other countries, focusing on addressing non-tariff barriers.
Moreover, the 1st Vice President of the Ghana Institute of Freight Forwarders (GIFF), Paul Kobina Mensah, provided crucial insights into the export process, covering areas such as insurance, negotiating favorable trade conditions (INCOTERMS), sales contracts, freight negotiation, freight charges, and how to reduce shipping charges.
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During the forum, participants raised several concerns, including escalating freight charges, challenges with the Letter of Commitment (LOC) system, the high exchange rate applied at the ports above the BoG rate, bureaucratic hurdles, and the lack of financial and technical support from the government and regulators.
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