Ghana’s cross-border trade landscape has undergone a significant shift in 2025, with informal trade emerging as the dominant force, surpassing formal trade for the first time in the first three quarters of the year. The Ghana Statistical Service (GSS) released a detailed report, Informal Cross-Border Trade: Q1-Q3 2025, highlighting the growing economic influence of unregulated trade activities along Ghana’s borders with Togo, Burkina Faso, and Côte d’Ivoire.
Key Findings from the GSS Report
The report reveals that the total value of informal cross-border trade between Ghana and its neighboring countries reached 31 billion Ghana cedis (approximately $2.69 billion USD) in the first three quarters of 2025. In stark contrast, formal cross-border trade was valued at 20.1 billion cedis ($1.75 billion USD) over the same period.
Government Statistician Alhassan Iddrisu emphasized the economic significance of informal trade during the report’s launch, stating:
“Across the quarters, informal cross-border trade accounted for approximately 6% of Ghana’s total trade, underscoring its critical role in the national economy.”
The data further reveals regional disparities in trade patterns, with informal trade dominating in certain border regions while formal trade remains more prominent in others.
Trade Dynamics with Neighboring Countries
1. Trade with Togo: Informal Trade Dominates
Ghana’s trade relationship with Togo, its eastern neighbor, is heavily skewed toward informal trade. The GSS report indicates that informal trade accounted for:
– 70.5% of total trade in Q1 2025
– 77.8% in Q3 2025, marking the highest share observed in the period.
In contrast, formal trade saw fluctuations:
– 33.8% in Q2 2025 (a peak compared to other quarters)
– 22.2% in Q3 2025, indicating a decline in structured trade activities.
This trend suggests that Togo remains a key hub for Ghana’s informal trade, with goods such as agricultural produce, textiles, and consumer goods moving freely across the border without strict regulatory oversight.
2. Trade with Côte d’Ivoire: Informal Trade Consistently Strong
Ghana’s trade with Côte d’Ivoire, its western neighbor, has also been dominated by informal channels. The report states that informal trade consistently made up more than 60% of total cross-border trade throughout the first three quarters of 2025.
This persistence highlights the preference of traders and consumers for informal routes, likely due to lower transaction costs, faster clearance, and greater flexibility compared to formal channels.
3. Trade with Burkina Faso: A Shift Toward Informality
Initially, formal trade held a stronger position in Ghana-Burkina Faso trade:
– 57.8% of trade was formal in Q1 2025.
However, the trend reversed in subsequent quarters, with informal trade surpassing formal trade:
– Exceeding 52% in Q2 and Q3 2025, indicating a growing reliance on informal networks for trade between the two countries.
This shift may be attributed to political and economic instability in Burkina Faso, which has led traders to seek alternative, less regulated pathways to facilitate commerce.
Economic Implications and Policy Recommendations
The GSS report underscores the economic resilience of informal trade, particularly in border communities, where it serves as a lifeline for livelihoods and job creation. However, policymakers are urged to leverage this data to develop strategies that maximize the benefits while mitigating potential risks.
Key areas of focus include:
1. Job Creation and Livelihoods – Informal trade sustains thousands of small-scale traders, transporters, and service providers along the borders. Policies should aim to formalize these activities where possible to improve tax compliance and economic stability.
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Wealth Distribution in Border Regions – The concentration of informal trade in specific areas can lead to uneven economic development. Government interventions, such as infrastructure development and market access programs, could help broaden economic opportunities beyond major border towns.
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Regulatory Harmonization – While informal trade fuels economic activity, it also operates outside regulatory frameworks, leading to potential tax evasion, smuggling, and market distortions. Policymakers must explore balanced approaches, such as simplified customs procedures or targeted formalization incentives, to capture the benefits of informal trade without stifling its growth.
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Regional Economic Integration – Ghana’s trade relationships with Togo, Burkina Faso, and Côte d’Ivoire are intricately linked. Strengthening regional trade agreements and cross-border infrastructure could help transition informal trade into more structured, value-added economic activities.
Conclusion: A Call for Strategic Engagement
The dominance of informal trade in Ghana’s cross-border economy is a testament to its economic vitality, particularly in regions where formal systems may be slow, bureaucratic, or inaccessible. However, the challenge lies in harnessing this momentum while addressing structural inefficiencies that persist in formal trade channels.
As Ghana continues to navigate its trade dynamics, the insights from the GSS report provide a critical foundation for policymakers to design inclusive economic policies that empower border communities, enhance tax revenue, and foster sustainable growth across the nation.
With informal trade now leading the way, the next phase of Ghana’s economic strategy must balance flexibility with regulation, ensuring that both formal and informal sectors contribute meaningfully to national development.