Kwesi Baffour Sarpong, CEO of Ghana Shippers’ Authority
Parliament has passed the Ghana Shippers’ Authority (GSA) Bill, 2024, into law to transform Ghana’s shipping industry.
The new legislation empowers the state agency to tackle long-standing issues related to unfair charges, lack of transparency and ineffective regulation that have plagued Ghana’s blue economy.
The Speaker of Parliament, Alban Sumana Kingsford Bagbin, officially announced the passage of the Bill, declaring, “Hon. Members, the Ghana Shippers’ Authority Bill, 2024, duly read the third time and passed,” before striking his gavel to signify the conclusion of the legislative process.
The Chief Executive Officer of the Ghana Shippers’ Authority, Kwasi Baffour Sarpong, has welcomed the enactment of the new law, highlighting its role in introducing greater transparency in the determination of port fees and charges.
He emphasised that the law would enhance the Authority’s ability to adapt to emerging trends and complexities within the shipping and logistics industry.
“The new law will empower the Ghana Shippers’ Authority to better protect the interests of shippers and service providers, improving regulatory oversight and efficiency across the commercial shipping sector,” Mr Sarpong stated in a media interview.
Addressing historical gaps
The Ghana Shippers’ Authority was originally established in 1974 to provide shippers with organizational support and bargaining power. However, the original Act had not been significantly updated in 50 years, rendering it inadequate for addressing contemporary industry challenges.
Despite the Authority’s efforts in advancing transit trade development since 1987, the lack of a modern legal framework has limited its effectiveness in regulating transit trade and maximizing benefits for Ghana.
The Ministry of Transport had argued that exorbitant charges imposed by service providers had stifled business growth and contributed to higher costs.
The absence of legislation empowering the GSA to regulate port charges exacerbated these issues. The Ministry underscored the necessity of amending existing legislation to enhance the GSA’s regulatory capacity and standardize shipping charges effectively.
Revamping legal framework
The newly passed law repeals and replaces the Ghana Shippers’ Authority Act of 1974 (NRCD 254), which had been in place for 50 years. The updated legislation addresses deficiencies in the old Act and existing legislative instruments, aligning Ghana’s shipping regulations with global best practices.
The revised law aims to alleviate the burdensome and excessive charges imposed on traders using Ghana’s sea and air ports, as well as land borders for international trade.
The Bill, presented by the Ministry of Transport, responds to concerns over the country’s international transit trade and the urgent need for a robust legal framework to protect shippers from unfair practices by multinational shipping service providers.
The new law is expected to enhance the regulation of the shipping and logistics sector by ensuring fair pricing and charges for all stakeholders involved.
It will grant the Ghana Shippers’ Authority increased authority to regulate fees at ports and borders, while also fostering greater participation from local firms in the sector.
The law also aims to improve transparency and accountability in the industry, ultimately driving better revenue generation and contributing to national socio-economic growth.
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