Introduction

The landscape of Ghana’s maritime trade is poised for a significant transformation as the Insurance Brokers Association of Ghana (IBAG) throws its weight behind the Ministry of Finance’s directive mandating Local Cargo Insurance. Effective February 1, 2026, this policy requires all industrial imports to be insured by local insurers rather than foreign entities.

Speaking at his investiture ceremony, the newly sworn-in IBAG President, Stephen Kwarteng Yeboah, described the initiative as a “double win” for the national economy and individual importers. This article provides a comprehensive analysis of the new Local Cargo Insurance mandate, exploring its economic implications, the mechanics of currency stabilization, and the practical benefits of insurance protection for Ghanaian businesses.

Key Points

Background

The directive to enforce Local Cargo Insurance is not a sudden development but a strategic move to reclaim a share of the insurance market that has historically been dominated by foreign underwriters. For decades, a significant portion of premiums paid for goods imported into Ghana flowed out of the country to offshore insurance companies.

The Investiture Ceremony

The announcement was made during the official investiture of Mr. Stephen Kwarteng Yeboah as the President of IBAG. Held at the NIC Auditorium in Accra, the event brought together key stakeholders, including Dr. Abiba Zakariah, the Commissioner of Insurance, and representatives from the Ministry of Finance.

Addressing Misconceptions

Mr. Yeboah acknowledged that the policy has faced criticism and misunderstanding within the trading community. He urged stakeholders to look beyond the “noise” and focus on the tangible benefits of maritime insurance. His message was clear: this is a protective measure designed to foster local economic resilience.

Analysis: The Economic and Practical Impact

Stabilizing the Ghanaian Cedi

One of the most compelling arguments for the Local Cargo Insurance mandate is its potential impact on the foreign exchange market. When importers purchase insurance from foreign entities, premiums are paid in foreign currency and leave the Ghanaian economy.

By keeping these premiums within Ghana, the country can reduce the demand for foreign currency, thereby contributing to the stability of the Cedi. This mechanism, known as import substitution in the service sector, helps conserve foreign reserves and strengthens the local currency’s purchasing power over time.

Streamlined Claims and Importer Support

Mr. Yeboah highlighted a critical pain point in international trade: the difficulty importers face when claiming compensation for damaged goods from foreign insurers. The geographical and legal distance often makes these claims cumbersome.

With domestic insurance coverage, local insurers are physically present and subject to Ghanaian laws and regulations. This proximity ensures that:

• Claims are processed faster.
• Legal recourse is more accessible.
• Importers receive personalized support during crises.

Professionalism and Regulatory Reform

Beyond cargo insurance, Mr. Yeboah outlined a broader vision for the insurance industry. A major focus is on regulatory streamlining. Currently, insurance brokers often face the burden of multiple licenses from various agencies. IBAG is advocating for the National Insurance Commission (NIC) to be the sole regulator, reducing administrative bottlenecks.

Furthermore, the association is tackling the issue of premium undercutting—unethical practices where brokers lower premiums to unsustainable levels to attract clients. Dr. Abiba Zakariah, the Commissioner of Insurance, has pledged NIC’s support to eliminate these practices, ensuring a fair playing field.

Practical Advice for Importers

Preparing for the February 2026 Deadline

With the enforcement date set for February 1, 2026, importers must adjust their supply chain logistics immediately. Here are steps to ensure compliance and maximize benefits:

1. Review Current Insurance Policies

Importers currently holding overseas cargo insurance should review the expiration dates. As the new mandate takes effect, policies with foreign insurers may no longer be valid for clearing goods through Ghanaian ports. Transitioning to a reputable local insurer is essential.

2. Partner with Licensed Insurance Brokers

Engaging a licensed member of IBAG ensures that you are dealing with professionals who adhere to strict ethical standards. These brokers can offer tailored advice on coverage limits, exclusions, and premium rates that comply with the new regulations.

3. Understand Your Coverage

While the government mandates insurance, the specific terms of coverage can vary. Importers should seek clarity on:

• Scope of Risk: What perils are covered (e.g., theft, damage, natural disasters)?
• Valuation: How are goods valued for claims purposes?
• Deductibles: What portion of the loss is borne by the importer?

4. Leverage Local Support for Disputes

In the event of a dispute or claim, local insurers are bound by Ghanaian law. Familiarize yourself with the NIC’s complaint mechanisms. Knowing that a regulatory body is locally accessible adds a layer of security that foreign insurers cannot provide.

Frequently Asked Questions (FAQ)

What is the new Local Cargo Insurance mandate in Ghana?

The mandate is a directive from the Ministry of Finance requiring all industrial imports into Ghana to be insured with local Ghanaian insurance companies, effective February 1, 2026. This replaces the previous reliance on foreign insurers for cargo coverage.

How will this policy affect the cost of imported goods?

Initially, there may be adjustments in logistics costs as businesses transition to local providers. However, the retention of premiums within the local economy and the stabilization of the Cedi are expected to lower long-term costs associated with currency volatility. Furthermore, competitive pricing among local insurers should keep premiums reasonable.

Is this policy legal under international trade laws?

Yes. Most nations have the sovereign right to regulate insurance for goods entering their borders, provided it does not violate specific international trade agreements. Ghana is joining other nations that prioritize local risk retention to boost their domestic financial sectors.

What happens if my goods are damaged in transit?

Under the new system, you will file a claim directly with the Ghanaian insurer. As Mr. Yeboah noted, local insurers are positioned to support you more efficiently than foreign entities, ensuring quicker assessments and settlements.

Does this apply to all imports?

The directive specifically targets “industrial imports.” However, importers should consult with the GRA or their insurance broker for specific guidelines regarding exemptions or thresholds for smaller shipments.

Conclusion

The backing of the Local Cargo Insurance mandate by IBAG President Stephen Kwarteng Yeboah marks a pivotal moment for Ghana’s insurance and trade sectors. By shifting the focus from offshore premiums to local protection, the policy offers a dual advantage: it strengthens the Ghanaian Cedi by retaining foreign exchange and offers importers a more reliable safety net for their goods.

As the February 2026 deadline approaches, the collaboration between the Ministry of Finance, the NIC, and insurance brokers will be critical. For importers, the message is clear: view this not as a regulatory hurdle, but as an opportunity to secure your business against uncertainties while contributing to national economic resilience.