Nearly Half of Ghana’s Cross-Border Trade Occurs Informally — GSS Warns of Economic Growth Impact

Nearly half of Ghana’s trade with neighbouring countries takes place outside formal systems, a trend the Ghana Statistical Service (GSS) warns could distort the nation’s true economic picture and hinder effective policy planning.

According to new findings from the GSS’s maiden Informal Cross-Border Trade (ICBT) Survey, a significant portion of trade between Ghana and its northern and western neighbours—particularly Togo, Côte d’Ivoire, and Burkina Faso—occurs informally. This means large volumes of goods bypass official customs procedures, making it difficult to accurately assess Ghana’s Gross Domestic Product (GDP) and trade performance.

Launching the survey, Government Statistician Dr. Alhassan Iddrisu explained that informal trade, though often overlooked, contributes substantially to Ghana’s economy. “When we acknowledge informal trade as legitimate economic activity, we build a more inclusive and realistic picture of our economy,” he said.

The report estimates that informal cross-border trade generates billions of cedis each year, sustaining thousands of small traders, farmers, transporters, and market women. However, because much of this activity is unrecorded, official statistics understate Ghana’s actual level of production and commerce—leading to misaligned growth projections and policy gaps.

Dr. Iddrisu emphasised that the aim is not to curb informal trade but to integrate it into economic planning. “GDP and trade statistics depend on capturing the true value of goods and services moving in and out of the country. When these flows go unrecorded, we end up with incomplete data that affects sound decision-making,” he noted.

The GSS is calling on government, private sector actors, and development partners to take concrete steps—such as improving border infrastructure, introducing trader registration and financing schemes, and harmonising regional trade procedures—to make cross-border trade more efficient and transparent.

“Now we have the data on informal trade,” Dr. Iddrisu concluded. “Let’s use it to design policies that are grounded in evidence and that reflect the real dynamics of our economy.”