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Enforce Native Shipment Insurance Plans on Business Imports from Feb. 1: Finance Ministry Fees BoG, GRA

Publication Date: January 21, 2026 | Category: Business, Insurance, Ghana Economy

The Ministry of Finance (MoF) has issued a formal directive to the Bank of Ghana (BoG) and the Ghana Revenue Authority (GRA) to implement mandatory Local Cargo Insurance coverage for all business imports into the country, effective February 1, 2026.

This strategic policy shift, announced by Finance Minister Dr. Cassiel Ato Forson, aligns with Section 222 of the Insurance Act, 2021 (Act 1061). It aims to curb capital flight, deepen local insurance penetration, and retain premiums within the Ghanaian market.

Introduction

The landscape of Ghana’s import economy is set for a significant transformation. In a move designed to bolster the domestic insurance sector and protect local shippers, the government is enforcing a strict requirement for local cargo insurance on all commercial imports.

This policy is not merely a bureaucratic requirement; it is a calculated economic intervention. By redirecting insurance premiums from foreign underwriters to local insurers, the government seeks to retain capital domestically, fostering sustainable business growth and financial resilience.

The directive was formally communicated during the 12th Presidential Investiture of the Ghana Insurers Association (GIA), signaling a unified commitment between the government and the insurance industry to enforce compliance.

Key Points

Background

To understand the significance of this directive, one must look at the historical context of Ghana’s insurance market. For years, a substantial volume of cargo entering Ghana has been insured by foreign insurers. This practice has resulted in significant capital flight, where premiums paid by Ghanaian importers flow directly out of the country, depriving the local economy of liquidity and investment opportunities.

The 12th Presidential Investiture

The directive was unveiled during a pivotal event: the 12th Presidential Investiture of the Ghana Insurers Association (GIA) held in Accra. The event marked the induction of Boatemaa Barfour-Awuah, Chief Executive Officer of Star Assurance Ltd., as the 12th President of the GIA. She succeeds Seth Aklasi, Managing Director of Ghana Reinsurance Company PLC.

During the ceremony, Dr. Cassiel Ato Forson (represented) highlighted the government’s recognition of the insurance industry’s role in Ghana’s evolving economic structure. He noted that while digital marketing and economic activities have grown, insurance penetration remains modest—particularly among Micro, Small, and Medium Enterprises (MSMEs), informal sector operators, and vulnerable demographics such as women and persons with disabilities.

The Problem of Low Penetration

Dr. Forson emphasized that these groups are the most vulnerable to economic shocks yet are the least likely to recover without adequate risk coverage. The reliance on foreign insurance exacerbates this vulnerability by draining resources that could otherwise be used to build local capacity and resilience.

Analysis

The enforcement of local cargo insurance is a multifaceted policy with profound implications for the Ghanaian economy. Below is a detailed analysis of its potential impacts.

1. Curbing Capital Flight

The primary economic rationale behind this directive is the retention of capital. When a Ghanaian business imports goods and insures them with a foreign entity, the premium leaves the country immediately. By enforcing local coverage, billions of cedis in premiums will remain within the Ghanaian financial system. These funds can be reinvested in local infrastructure, used to pay claims on domestic risks, and contribute to the overall liquidity of the market.

2. Strengthening the Local Insurance Industry

The local insurance industry has faced challenges regarding liquidity and profitability. The influx of cargo insurance premiums will bolster the balance sheets of local underwriters. This increased capital base allows local firms to take on larger risks, improve their solvency margins, and offer more competitive products.

3. Regulatory Compliance and Enforcement

The success of this policy hinges on the collaboration between the GRA and the BoG. The GRA will likely require proof of local cargo insurance as part of the customs clearance process, while the BoG will oversee the regulatory compliance of the insurance products offered. This creates a closed-loop system where importers cannot bypass local insurers without violating import regulations.

4. Challenges in Implementation

Despite the benefits, implementation may face hurdles. Importers may perceive local insurers as lacking the capacity to underwrite large or complex cargo risks. Additionally, ensuring that local insurers maintain fair pricing and service quality will be critical to prevent the policy from becoming a mere cost burden on businesses without added value.

Practical Advice

For businesses and importers preparing for the February 1, 2026 deadline, here are actionable steps to ensure compliance and minimize disruption.

Review Your Supply Chain Insurance

Start auditing your current insurance arrangements immediately. If your current policy covers international transit via a foreign insurer, you must switch to a local provider or ensure your local broker coordinates with a domestic underwriter to issue a policy that meets Ghanaian regulatory standards.

Engage with Local Brokers

Work closely with licensed insurance brokers in Ghana. They can help assess the coverage limits of local insurers and structure a program that meets the specific needs of your cargo. Do not wait until the deadline to test the system; initiate discussions now to understand premium rates and coverage terms.

Understand the Documentation

Ensure that your documentation process is streamlined. When clearing goods through the GRA, you will need to present a valid certificate of insurance issued by a locally licensed insurer. Familiarize your logistics team with these requirements to avoid delays at the ports.

Cost-Benefit Analysis

While local premiums might differ from foreign rates, the policy aims to keep capital within the ecosystem, which benefits the broader economy. However, businesses should compare quotes from various local insurers to ensure competitive pricing. The GIA and National Insurance Commission (NIC) are expected to monitor pricing to prevent exploitation.

FAQ

Conclusion

The Ministry of Finance’s directive to enforce local cargo insurance represents a landmark shift in Ghana’s trade and financial policies. By leveraging the Insurance Act of 2021, the government is prioritizing economic sovereignty and local development over the convenience of foreign underwriting.

For importers, the transition requires preparation and adaptation. However, the long-term benefits—a more robust local financial sector, retained capital, and a sustainable insurance industry—promise a more resilient economic environment. As the February 1, 2026 deadline approaches, stakeholders across the supply chain must collaborate to ensure a smooth implementation that balances regulatory compliance with business efficiency.