Ghana's import bill for 14 items in 2021 was roughly 2.6 billion, and the items included wigs, rice, brooms, used clothes, and other items. According to OEC trade data, the nation imported rice worth over half a billion dollars, chicken meat worth over 400 million, and palm oil worth almost 290 million.
Related To This: GUTA Applauds Suspension Of Import Restriction Bill
The Trade Ministry recently attempted to introduce legislation to restrict the importation of certain items. However, the government suspended the decision to present the bill before parliament after facing challenges in doing so. The proposed regulation aimed to place restrictions on the importation of 22 listed products, including rice, cement, fish, sugar, and other items. The Minority in Parliament called for the immediate withdrawal of the regulation.
The Trade Minister hoped that the proposed restrictions would help boost local industries and strengthen the local currency.
However, the International Monetary Fund (IMF) has advised against imposing or intensifying import restrictions for balance of payments purposes. This advice is outlined in the IMF bailout package, which pledges to support Ghana's balance of payments with 3 billion between 2023 and 2026. “No imposition or intensification of import restrictions for balance of payments reasons”, the Fund stressed on page 76 of the program document.
Related To This: Food Prices Will Rise Significantly If Imports Of 21 Items Are Restricted - GAWU
The IMF has specified four decisions that the Government of Ghana cannot make while under the IMF program, including restrictions on making international payments and transfers, introduction or modification of multiple currency practices, conclusion of bilateral payments agreements inconsistent with IMF Articles of Arrangement, and imposition or intensification of import restrictions for balance of payments reasons. These criteria will be continuously monitored by the Fund.
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