‘Suspend it now’ – FABAG appeals directly to Mahama to halt new import verification programme

Wait 5 sec.

The Food and Beverages Association of Ghana (FABAG) has made a direct appeal to President John Dramani Mahama to suspend implementation of the Ghana Easy Pass Programme.It warned that the new import verification regime will increase business costs and ultimately drive up consumer prices.In a statement issued on Monday, July 6, FABAG described the Ghana Standards Authority’s decision to introduce the mandatory pre-export conformity verification programme as an unnecessary burden on businesses already struggling with rising operating costs.The association said it “expresses its strongest condemnation of the decision by the Ghana Standards Authority (GSA) to introduce the Ghana Easy Pass Programme, a mandatory pre-export conformity verification regime for imported products destined for Ghana.”According to FABAG, the policy comes at a difficult time for the private sector and duplicates the work of existing state institutions responsible for product safety and quality assurance.“It is difficult to understand why government would seek to impose another layer of bureaucracy and cost on importers when existing regulatory institutions are already adequately mandated to ensure product safety and standards,” the statement said.FABAG argued that agencies, including the Food and Drugs Authority, Ghana Standards Authority, Ghana Revenue Authority, and Ghana Ports and Harbours Authority, already inspect and test imported goods.“If there are operational challenges within these institutions, they should be strengthened, not bypassed through the introduction of another costly programme.”The association warned that the new regime would significantly increase the cost of importing goods.“This policy is simply adding another tax by another name,” FABAG stated. It said importers would be required to pay additional certification fees, incur extra administrative expenses, experience shipment delays and absorb higher compliance costs before products even leave their countries of origin.“These costs will inevitably be passed on to the Ghanaian consumer through higher prices.”FABAG said businesses were still recovering from previous regulatory reforms and were simultaneously dealing with rising utility tariffs, high interest rates, exchange rate volatility, expensive transport and the high cost of borrowing.“The private sector cannot continue to absorb an endless stream of new costs without serious consequences for investment, employment and consumer prices.”The association also expressed surprise that government had revived a policy which it said had previously been rejected by the business community.“What is even more surprising is that the business community overwhelmingly rejected similar conformity verification programmes in the past after extensive consultations. Those objections were well-founded then and remain equally valid today.”It further argued that the policy contradicts government’s stated economic objectives.“Government cannot genuinely speak about improving the ease of doing business while simultaneously introducing measures that make doing business more expensive.”It added: “Government cannot seek to reduce inflation while introducing policies that directly increase the cost of imported raw materials and finished products. Government cannot encourage investment while creating additional layers of regulatory costs and uncertainty.”FABAG appealed directly to President Mahama to stop the programme before it takes effect.“FABAG respectfully calls on His Excellency President John Dramani Mahama to intervene immediately and suspend the implementation of the Ghana Easy Pass Programme.”Addressing the President, the association said, “Mr President, your administration has repeatedly assured the private sector that it would create a business-friendly environment capable of stimulating production, attracting investment and creating jobs. The introduction of this programme sends the exact opposite message.”It urged the President to direct the Ghana Standards Authority to withdraw the policy and begin fresh consultations with the business community.FABAG also called on business associations, chambers of commerce, importers, manufacturers, distributors and the wider private sector to unite against the policy, insisting that “The time has come for government to listen to the voice of businesses.”“Our economy does not need more bureaucracy! Our businesses do not need more costs! Our consumers do not need higher prices! Ghana needs policies that encourage enterprise, not policies that punish it. THIS IS BECOMING TOO MUCH!”