The Ashanti Business Owners Association (ABOA) is calling on the government to suspend the newly announced directive mandating local insurance for all marine cargo imports, warning that its immediate enforcement could disrupt trade and increase costs for businesses.

The association has rejected the policy in its current form, arguing that while it supports efforts to strengthen Ghana’s insurance industry, the compulsory nature of the directive places an additional financial burden on importers at a time when businesses are already grappling with high operating costs and tight credit conditions.

ABOA says the directive risks affecting supply chains, particularly for small and medium-sized importers who may struggle to absorb higher insurance premiums. The association is also calling for broader stakeholder engagement, insisting that industry players were not adequately consulted before the directive was announced.

In a statement, ABOA noted that a collaborative approach would help ensure that any reforms aimed at retaining insurance premiums locally do not undermine competitiveness at the ports or discourage international trade partners.

“A sustainable insurance market cannot be built through compulsory mechanisms that distort trade flows and increase systemic costs. Policy coherence, regulatory predictability, and alignment with international trade norms remain critical to Ghana’s economic competitiveness.”

The directive is intended to ensure that marine cargo insurance for goods entering Ghana is placed with locally licensed insurers, a move government believes will deepen domestic capacity, retain foreign exchange, and grow the insurance sector.

However, the association maintains that achieving these objectives requires gradual implementation, clear guidelines, and market-driven solutions rather than outright compulsion.

ABOA is therefore urging government to temporarily suspend the directive and engage importers, insurers, and brokers to develop a framework that balances national economic interests with the realities facing businesses.

“We respectfully call on the Government of Ghana, the Ministry of Finance, the Ministry of Trade, Agribusiness and Industry, and the National Insurance Commission (NIC) to suspend the proposed measure and initiate broad-based stakeholder consultations to develop a technically sound and economically efficient alternative.”

Industry watchers say the coming weeks will be critical, as dialogue between government and stakeholders could determine how the policy is ultimately rolled out.