Ghana's Informal Food Trade Deficit Doubles to GHS 800 Million

    Cooking oil remains the largest informal food import, highlighting growing reliance on neighbouring markets.

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    Ghana's Informal Food Trade Deficit Doubles to GHS 800 Million

    Ghana’s informal food trade deficit doubled to GHS 800 million by the third quarter of 2025. This significant increase from GHS 400 million in the first quarter highlights Ghana’s growing reliance on informal imports to meet domestic food demand. Cooking oil consistently topped the list of these informal food imports, underscoring a critical dependency on neighbouring markets for key commodities.

    New data from the Ghana Statistical Service’s (GSS) Informal Cross Border Trade Report reveals this trend. Cooking oil accounted for 16.3% of informal food imports in the first quarter of 2025. Although its share slightly eased to 14.4% by the third quarter, it remained the single largest food commodity entering the country through informal channels. This reliance occurs as Ghanaian households continue to struggle with food prices, and traders seek basic consumer goods from outside the country.

    This widening deficit is a significant economic trend within Ghana’s broader economic narrative. It reflects persistent supply gaps in domestic food production and sustained demand for products sourced from neighbouring countries. The report also noted that Ghana’s informal non-food trade surplus narrowed from GHS 1 billion in the first quarter to GHS 800 million by the third quarter. This indicates a shift in the overall composition of informal cross-border trade, with food imports gaining prominence.

    The Ghana Statistical Service report reinforces the growing importance of informal trade in Ghana’s food economy. It raises crucial questions about the state of domestic agricultural production and the nation's food security. For example, rice ranked among the next most imported products, representing 8.4% of informal food imports in the third quarter. Shea nuts followed at 7%, while sugar accounted for 5.7%.

    This situation presents a clear challenge for policymakers. The data strongly suggest a need to strengthen local production capabilities and improve agricultural value chains. Reducing dependence on imported staple food products like cooking oil and rice is essential for long-term economic stability. For consumers, informal trade continues to play a vital role in ensuring the availability of these essential items across Ghanaian markets.

    The steady decline in livestock imports, particularly cattle, from 6.9% in the first quarter to 5.5% by the third quarter, also merits attention. Maize imports remained relatively stable, fluctuating between 4.7% and 5.1% across the quarters. These figures collectively paint a picture of an economy heavily influenced by cross-border informal trade, particularly in the food sector. Addressing these imbalances will be crucial for Ghana's economic resilience and food sovereignty.

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