Former GUTA President Joseph Obeng has issued a statement on discussions surrounding the implementation of the Marine Cargo Act, stating that the Ghana Union of Traders’ Associations (GUTA), under his leadership, never consented to the Act.

The Marine Cargo framework, enforced by the National Insurance Commission (NIC), requires that all goods imported into Ghana be insured locally through insurance companies licensed in the country. While the policy is aimed at retaining insurance premiums within Ghana and strengthening the local insurance industry, serious concerns raised by the trading community remain unresolved.

He maintained his position on the reasons why the Act cannot be accepted or consented to and noted that legitimate questions have not been answered, even though assurances were given that responses would be provided to him and his Association.

Among the issues raised are why an importer should be punished with a custodial penalty for not using the service of an insurance company in Ghana, proof of capacity with references, details of intermediary insurance companies abroad, and how the policy will not add time and cost to doing business.

Insurance service, he stressed, cannot be imposed on the business community, adding that insurance companies should make themselves attractive for patronage through competitive pricing, proven capacity, and efficiency. Stakeholder engagement has not been conclusive, and the concerns of importers have not been adequately addressed.

He also noted that suppliers have insurable interest in the goods imported based on existing credit arrangements and often have their own preference for insurance companies at any place and on terms of their choosing, describing these as standard international trade practices that cannot simply be ignored.

He described it as morally wrong for the law to impose custodial punishment on businesses that do not insure in the country, stating that such punitive measures are excessive and do not foster collaboration or confidence within the business environment.

Furthermore, he indicated that local insurance companies have not sufficiently demonstrated the capacity, experience, or competitive pricing required to handle marine cargo insurance effectively, and that the lack of patronage by Ghanaian businesses is driven by concerns about cost, efficiency, and global trade realities.

He maintained that until these legitimate concerns and unanswered questions are fully addressed, it cannot be said that GUTA has endorsed or consented to the Marine Cargo Act.

The statement was signed by Joseph Obeng, Former President, Ghana Union of Traders’ Associations (GUTA).

PRESS RELEASE

STATEMENT BY FORMER GUTA PRESIDENT, JOSEPH OBENG, ON THE MARINE CARGO ACT

My attention has once again been drawn to discussions surrounding the implementation of the Marine Cargo Act. I wish to state, unequivocally, that the Ghana Union of Traders’ Associations (GUTA), under my leadership, never consented to this Act.

The Marine Cargo framework, enforced by the National Insurance Commission (NIC), requires that all goods imported into Ghana be insured locally through insurance companies licensed in the country. While the policy is said to be aimed at retaining insurance premiums within Ghana and strengthening the local insurance industry, serious concerns raised by the trading community remain unresolved.

I have always maintained my position on the reasons why we cannot accept or consent to this Act. I have also asked legitimate questions that have not been answered to this day, even though assurances were given that responses would be provided to me and my Association.

Specifically, I have asked them to let us know why an importer should be punished with a custodial penalty for not using the service of an insurance company in Ghana. I have asked them to show proof of their capacity, with references. I have also requested that they provide details of their intermediary insurance companies abroad and explain how this policy will not add time and cost to doing business.

Insurance service cannot be imposed on the business community. Insurance companies should make themselves attractive for patronage through competitive pricing, proven capacity, and efficiency. Stakeholder engagement on this matter has not been conclusive, and the concerns of importers have not been adequately addressed.

Our suppliers have insurable interest in the goods we import based on existing credit arrangements. In many instances, suppliers have their own preference for insurance companies at any place and on terms of their choosing. These are standard international trade practices that cannot simply be ignored.

It is morally wrong for the law to impose custodial punishment on businesses that do not insure in the country. Such punitive measures are excessive and do not foster collaboration or confidence within the business environment.

Furthermore, local insurance companies have not sufficiently demonstrated that they possess the capacity, experience, or competitive pricing required to handle marine cargo insurance effectively. The lack of patronage by Ghanaian businesses is not accidental; it is driven by concerns about cost, efficiency, and global trade realities.

Until these legitimate concerns and unanswered questions are fully addressed, it cannot be said that GUTA has endorsed or consented to the Marine Cargo Act.

Signed,

Joseph Obeng

Former President

Ghana Union of Traders’ Associations (GUTA)