Don't implement exorbitant tariff hikes at the port - Exim Frozen Foods Association to govt

The Ghana EXIM Frozen Foods Association has called on the Ghana Ports and Harbour Authority (GPHA) to desist from implementing the proposed tariff hike which is about 68%.

They also called on the Ghana Shippers Authority to, as a matter of urgency, act in the stead of the business community to protect port users from what they labelled as exorbitant fees that could push them out of business.

In a press release sighted by GhanaWeb Business, the Association further entreated the GPHA, Ghana Shippers Authority to hold key stakeholder engagements to find sustainable solutions which will create a conducive environment for businesses to grow.

"We acknowledge that maintaining a sustainable port infrastructure is crucial for the smooth functioning of trade and commerce. However, we firmly believe that such a substantial increase in tariffs could have far-reaching consequences on our industry, causing additional strain on already struggling businesses," part of the release read.

"One particular area of concern is the potential impact on the cost of importing frozen foods [Fruits and protein], a vital source of nutrition for millions of consumers in our nation," it added.

The Ghana EXIM Frozen Foods Association said the escalation in port tariffs could lead to higher import costs, which, in turn, may result in elevated retail prices of frozen foods.

This, they said, could exacerbate food insecurities in the country.

Read the press release below;

FOR IMMEDIATE RELEASE

CONCERN OVER UNEXPECTED INCREASE IN PORT TARIFFS: A POTENTIAL THREAT TO FOOD SECURITY.

3rd August, 2023 Accra-Ghana

The EXIM FROZEN FOODS ASSOCIATION expresses deep concern regarding the recent announcement made by the Ghana Ports and Habour Authority (GPHA), regarding significant hikes in Port Tariffs.

Our members are taken aback by this decision, especially in light of the prevailing economic challenges and the almost stifling environment of doing business we have been driven into.

We acknowledge that maintaining a sustainable port infrastructure is crucial for the smooth functioning of trade and commerce. However, we firmly believe that such a substantial increase in tariffs could have far-reaching consequences on our industry, causing additional strain on already struggling businesses.

One particular area of concern is the potential impact on the cost of importing frozen foods (Fruits and protein), a vital source of nutrition for millions of consumers in our nation. An escalation in port tariffs could lead to higher import costs, which, in turn, may result in elevated retail prices of frozen foods. This could exacerbate food insecurities

Moreover, we note that previous concerns raised by GPHA itself about reduced port traffic which has been a consequence of the higher cost of doing business comparatively to our neighboring ports remains unresolved. Therefore, Implementing these new tariffs might exacerbate the issue, leading to further escalation in port operations charges, adversely affecting importers and exporters alike.

We are particularly worried about the apparent lack of concern on this matter by the Ghana Shippers Authority as a regulator within the industry. This raises serious questions about their commitment to ensuring a conducive and sustainable trading environment.

In light of these pressing concerns, we urge GPHA to an immediate halt the implementation of the proposed tariff hikes which hovers around 68% and engage in meaningful consultations with relevant stakeholders. We also call on the Ghana Shippers Authority to act with all urgency to protect port users from this exorbitant fees, that could further leave our ports empty.

Collaborative discussions will provide an opportunity to assess the potential adverse impact on businesses, especially those dealing with essential food items, and the overall economy.

We believe that a joint effort towards finding sustainable solutions is paramount to ensure a conducive environment for business growth and maintain a healthy trade ecosystem.

We, as stakeholders in the port community, stand ready to contribute constructively to this dialogue and work towards a balanced approach that benefits all parties involved.

We look forward to the opportunity to engage in discussions and find a way forward that promotes growth, economic stability, and the well-being of our nation.

Kwame Obiri-Adjei

0201721340

EXIM FROZEN FOODS ASSOCIATION

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