Chief Executive Officer of the Ghana Shippers’ Authority, Professor Ransford Gyampo, has expressed worry over the low level of awareness among importers regarding cargo insurance, warning that the gap is exposing businesses to significant risks.
Speaking at a sensitisation seminar on mandatory local insurance on imports held on Wednesday, April 8, Prof. Gyampo disclosed that about 75% of importers in Ghana have little or no knowledge of the insurance cover on their cargo, alongside a limited understanding of their rights and obligations within the shipping process.
He noted that despite most shipments into the country being conducted under the Cost-Insurance-Freight (CIF) arrangement, only about 6% are insured locally, raising concerns about the effectiveness of risk protection for Ghanaian importers.
According to him, the situation has also contributed to substantial capital flight, as many importers continue to rely on foreign insurers, resulting in insurance premiums being paid outside the country.
“It is also obvious that insurance premiums paid abroad deprive the local insurance industry of revenue that could otherwise stimulate economic growth, create jobs, and enhance technical capacity within Ghana’s financial services sector,” he stated.
Cargo insurance is designed to protect goods while they are in transit against risks such as damage, theft, or loss.
Under the CIF arrangement, the seller typically provides insurance for the goods up to the destination; however, if this insurance is secured from foreign companies, the financial benefits do not accrue to Ghana unless it is underwritten by local insurers.
