GUTA never endorsed Marine Cargo Act — Joseph Obeng

Joseph Obeng, former President of the Ghana Union of Traders’ Associations (GUTA), has reaffirmed that the Association has never endorsed the Marine Cargo Act, citing unresolved concerns raised by the business community.

The Marine Cargo framework, implemented by the National Insurance Commission (NIC), mandates that all goods imported into Ghana must be insured locally through insurance companies licensed in the country. The policy aims to retain insurance premiums within Ghana, strengthen the domestic insurance industry, and build local capacity in marine underwriting. Under the law, importers are required to secure marine cargo insurance from a Ghanaian insurer before clearing their goods, with penalties imposed for non-compliance.

Despite these objectives, Mr Obeng maintains that GUTA has consistently objected to certain aspects of the Act.

Speaking to GhanaWeb Business on February 11, 2026, he said he had repeatedly outlined reasons why the Association could not accept or consent to the law, adding that several questions he raised remain unanswered.

“I have always maintained the reasons why we cannot accept or consent to this Act. I have also asked legitimate questions that have not been answered till today, even though they promised to get back to me and my Association,” he stated.

Mr Obeng argued that insurance services should not be made compulsory by law, stressing that insurers must attract clients through competitiveness rather than compulsion.

“Insurance service cannot be imposed on the business community. Insurance companies should make themselves attractive for patronage,” he said.

He further indicated that consultations between regulators and stakeholders have not been fully concluded.

“Stakeholder engagement has not been conclusive,” he emphasised.

According to him, many foreign suppliers already hold insurable interest in goods shipped to Ghana due to existing credit arrangements. He explained that suppliers often determine their preferred insurance arrangements.

“Our suppliers have insurable interest in the goods we import based on credit arrangements. They also have their own preference for insurance companies at any place and on terms of their choosing,” he noted.

Mr Obeng also criticised provisions of the Act that prescribe custodial sentences for businesses that fail to insure their goods locally, describing such measures as inappropriate.

“It is morally wrong for the law to impose custodial punishment for businesses that do not insure in the country,” he argued.

He disclosed that he had formally requested clarification from regulators on key concerns, including the justification for custodial penalties, the capacity of local insurers, and the potential impact of the policy on cost and efficiency in trade.

“I have asked them to explain why an importer should face a custodial penalty for not using the services of a Ghanaian insurance company. I have also asked them to provide proof of their capacity, references to intermediary insurance companies abroad, and assurances that the policy will not increase time and cost of doing business,” he said.

Mr Obeng questioned whether local insurers possess the capacity, experience, and competitive pricing required to handle marine cargo insurance effectively.

“Local insurance companies have not demonstrated that they have the capacity, experience, or proof of affordability in pricing, which explains the low patronage by Ghanaian businesses,” he added.

He maintained that until these issues are satisfactorily addressed, GUTA cannot be said to have endorsed the Marine Cargo Act.