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FABAG, the apex body of the food and beverages industry in Ghana, has appealed to President Mahama to halt the Ghana Easy Pass Programme, a mandatory pre-export conformity verification regime. The association warned that the programme will increase business costs and drive up consumer prices. The programme, which was introduced by the Ghana Standards Authority, requires importers 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.
The association described the Ghana Easy Pass Programme as an unnecessary burden on businesses already struggling with rising operating costs. In a statement issued on Monday, July 6, FABAG expressed its strongest condemnation of the decision by the Ghana Standards Authority (GSA) to introduce the programme. 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 association said. 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.
FABAG argued that the new regime would significantly increase the cost of importing goods. This policy is simply adding another tax by another name, FABAG stated. 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.
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. FABAG called on President Mahama to direct the Ghana Standards Authority to withdraw the policy and begin fresh consultations with the business community.
The association 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 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. 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, the association said.