The Food and Beverages Association of Ghana (FABAG) has suspended its planned industrial action following what it describes as “productive and transparent” engagements with government over concerns surrounding the implementation of a new import valuation system.
Speaking on the Asaase Breakfast Show on Friday (17 april), the General Secretary of Food and Beverages Association of Ghana, Sam Ato Aggrey, said the decision to suspend—not cancel—the strike was based on key assurances given during a high-level meeting with the Deputy Finance Minister and officials of the Ghana Revenue Authority.
According to him, the meeting, described as a “joint business forum,” provided an opportunity for stakeholders to openly discuss concerns and agree on a pathway forward.
“We have not called off the strike completely. It is on suspension. If things do not go as expected, we will reactivate it,” he cautioned.
A major outcome of the meeting was the agreement to establish a multi-stakeholder committee to review and resolve issues related to the system’s implementation.
Aggrey said the committee is expected to be operational immediately, with a mandate to ensure better understanding of the system and facilitate communication between authorities and the business community.
“We need a platform where we can engage directly with those running the system so that any issues can be addressed promptly,” he said.
Concerns over AI-driven valuation system
FABAG has been particularly critical of the new AI-based import valuation system, arguing that while aspects of it promote fairness, others risk distorting pricing and increasing the cost burden on importers.
Aggrey acknowledged that the system’s ability to track historical transaction data and detect under-invoicing could help ensure parity and prevent revenue losses.
However, he raised concerns about how the system aggregates prices from multiple sources—including internet listings and retail benchmarks—which may not reflect negotiated prices between importers and suppliers.
“As importers, we negotiate prices with manufacturers. The system should recognise those agreed values instead of imposing higher benchmark prices,” he explained.
He warned that failure to address these discrepancies could lead to inflated duties and increased costs for businesses.
Transparency and stakeholder engagement
A key demand from FABAG, according to Aggrey, is greater transparency in the system’s operation. He criticised the limited stakeholder consultation prior to its rollout, noting that businesses were not adequately engaged.
“If there is transparency, there will be no ambiguity. But when things are done in secrecy, it creates mistrust and resistance,” he said.
He welcomed government’s commitment to involve stakeholders more actively through the newly formed committee.
Additional reforms and relief measures
The discussions also addressed operational challenges, including delays in clearing goods and the cost implications of demurrage.
Aggrey revealed that authorities have agreed to expand the appeals system by increasing the number of personnel handling disputes from six to twelve, a move expected to speed up resolution processes.
He added that measures are being considered to prevent excessive demurrage costs, which in some cases can exceed 50% of the value of goods.
While expressing optimism about the engagement process, Aggrey stressed that businesses are closely monitoring developments.
“We cannot always antagonise the system. We have to give it a chance to work. But it must also be fair to both government and businesses,” he said.
He reiterated that while government’s revenue objectives are legitimate, policies must not undermine business sustainability.
The suspension of the industrial action provides a window for dialogue, with stakeholders expected to reconvene through the committee to refine the system and address outstanding concerns.
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