Ghana’s supply chain integrity is facing a severe test, with the Food and Beverages Association of Ghana (FABAG) issuing a stark warning that critical imports of rice and sugar are being dangerously delayed at the Tema Port.
The crisis, driven by a prolonged labour dispute and port inefficiency, threatens to trigger significant price hikes in the market while also jeopardising government revenue as importers weigh diverting cargo to rival West African ports.
The situation, which has seen the port’s critical offloading capacity plummet by 90%, highlights deep-seated operational bottlenecks that are now attracting international scrutiny and impacting investor confidence.
FABAG Sounds the Alarm on Food Security
In a robust statement dated December 29, FABAG detailed a critical operational failure: the shortage of unskilled labour needed to offload bulk and bagged goods from vessels. These essential workers are currently on strike following disagreements with the Tema Port management over compensation rates.
The reliance on temporary labour has proven insufficient. According to FABAG, these temporary workers can currently manage only about 200 metric tonnes per day, a precipitous drop from the standard operational level of at least 2,000 metric tonnes daily.
This sharp reduction has created a ripple effect: prolonged clearance times, mounting operational costs, and escalating demurrage charges for association members.
“Some members of FABAG are therefore facing increased operational costs, which could have downstream effects on prices and availability of food and beverage products, especially rice and sugar, in the market,” the statement cautioned. The warning places the stability of Ghana’s staple food market at immediate risk.
Risk of Diversion to Lomé, Smuggling Concerns
Beyond immediate price concerns, FABAG raised the alarm over a potentially damaging long-term consequence: the diversion of trade to neighbouring countries.
If the situation remains unresolved, the association warned that “some importers may be forced to divert their goods to the Lome Port in Togo.”
Such a move would not only harm Tema Port’s competitive standing but also pose broader economic and security risks. FABAG stressed that cargo diversion could inadvertently encourage smuggling attempts back across the border into Ghana, leading to “massive losses in government revenue and undermining trade regulations.”
FABAG is urgently calling for dialogue, urging the Director General of the Tema Port, relevant authorities, and labour representatives to convene and find a swift, sustainable resolution to restore efficiency and protect the nation’s food supply chains.
US Commerce Department Flags Parallel Issues
The operational challenges at Tema Port appear to extend beyond the food sector, impacting major international players and drawing attention from senior U.S. officials.
In a separate development, officials from the U.S. Department of Commerce’s International Trade Administration (ITA) met with Ghana’s Ambassador to Washington, Victor Emmanuel Smith, raising concerns over port delays affecting American firms operating in the mining sector.
The U.S. delegation specifically highlighted that heavy-duty mining equipment belonging to the American firm Newmont Corporation has been held at the Tema Port for prolonged periods. The delays are reportedly linked to compliance issues stemming from Ghana’s recently introduced local content policy in the mining sector, disrupting operations and increasing project timelines.
Ambassador Smith acknowledged the concerns and assured the U.S. officials that the embassy is prepared to engage relevant authorities in Ghana to facilitate the release of the equipment, provided proper documentation is supplied.
The dual warnings from both domestic industry associations and international trade partners underscore a pressing need for immediate intervention at the Tema Port to resolve labour disputes and streamline clearance processes, safeguarding both the nation’s food security and its reputation as a stable investment destination.
By Adnan Adams Mohammed
