A coalition of trade and business associations has strongly opposed a new directive from the Ministry of Finance requiring all marine cargo destined for Ghana to be insured exclusively with local insurance companies.

The coalition, which includes the Coalition of Concerned Exporters, Importers, Traders and Freight Forwarders, the Food and Beverages Association of Ghana (FABAG), and the Traders Advocacy Group Ghana (TAGG), described the policy as an unnecessary financial burden that disrupts normal commercial practices.

The directive seeks to enforce Section 222 of the Insurance Act, 2021 (Act 1061), but the groups argue it will raise operational costs rather than strengthen the trading environment.

In a statement signed by Convener Michael Obiri-Adjei, the coalition said marine cargo insurance is a private commercial arrangement between buyers, sellers, and financiers, rather than a public third-party risk that warrants compulsory regulation.

“Mandatory insurance is only justified where activities pose clear risks to third parties, such as motor third-party insurance or insurance for public commercial facilities. Marine cargo insurance does not fall within this category,” the statement noted.

The coalition warned that the directive could give local insurers an unfair advantage by limiting competition. They argued that forcing traders to use domestic insurers—even when foreign firms offer better pricing or coverage—would push up costs and eventually increase prices for consumers.

The groups also highlighted practical challenges in the shipping sector, noting that most international trade operates under Cost, Insurance, and Freight (CIF) terms, where suppliers already provide insurance. In credit-based transactions, suppliers often retain ownership of goods, making it impractical for local traders to dictate insurance arrangements.

While commending recent fiscal measures that have helped stabilise the cedi, the coalition cautioned that the insurance mandate could undermine these gains.

The statement urged the Ministry of Finance to withdraw the directive, scheduled to take effect on February 1, 2026, and to engage stakeholders in developing a more practical framework for marine cargo insurance.