Ghana’s informal cross-border trade has emerged as a critical yet underreported economic force, contributing GH¢31 billion—or six percent of the nation’s total trade—between January and September 2025, according to the Ghana Statistical Service (GSS). The revelation, detailed in the latest Informal Cross-Border Trade Survey, underscores how this unregulated sector has long operated as a shadow economy, sustaining livelihoods, employment, and regional commerce while evading formal statistical capture.
The findings, presented by Dr. Alhassan Iddrisu, Government Statistician, during a high-profile release in Accra, reveal that informal trade with neighboring countries—Togo, Burkina Faso, and Côte d’Ivoire—exceeded formal trade by a significant margin, totaling GH¢20.1 billion over the same period. This stark contrast exposes the systematic exclusion of informal trade from Ghana’s official economic assessments, despite its profound impact on household incomes, small businesses, and cross-border supply chains.
Key Insights from the GSS Survey
The 2025 survey, conducted across 206 active border points in 10 regions, provides a granular breakdown of Ghana’s informal trade dynamics:
1. Dominance of Informal Trade Over Formal Channels
- Togo remains the primary trading partner, with informal trade accounting for 77.8% of total transactions by the third quarter—up from 70.5% in Q1 2025.
- Côte d’Ivoire follows, with over 60% of trade conducted informally, reflecting deep-rooted cross-border economic ties.
- Burkina Faso saw a shift from formal to informal dominance, particularly in Q2 and Q3, as traders increasingly bypassed official channels.
2. Trade Surplus and Deficit Shifts
While Ghana maintains an overall trade surplus, the informal sector’s balance has fluctuated sharply:
– The informal trade surplus narrowed dramatically, from GH¢665.3 million in Q2 to just GH¢49.3 million in Q3.
– Trade deficits with Togo widened, rising from GH¢725.5 million in Q1 to GH¢994.1 million by Q3, signaling increasing reliance on imports from the neighboring nation.
– Burkina Faso remained the top destination for Ghana’s agricultural exports, capturing nearly 63% of informal agricultural trade.
3. Trade Composition: What Moves Across Borders?
The survey identifies key commodities driving informal trade flows:
| Export Categories | Key Products | Informal Trade Value (Est.) |
|—————————–|——————————————|———————————-|
| Agricultural Exports | Maize, rice, cassava, livestock | GH¢12.5 billion |
| Fuel & Energy | Petroleum products, cooking oil | GH¢5.2 billion |
| Food & Beverages | Alcoholic drinks, soft drinks, energy drinks | GH¢4.8 billion |
| Manufactured Goods | Textiles, plastics, household items | GH¢4.1 billion |
- Togo is the leading hub for fuel, food, and beverage exports, while also being the primary source of informal imports into Ghana.
- Cooking oil remains the single largest informal food import, followed by rice and processed foods.
- Tricycles—commonly used for short-distance transport—facilitate the majority of cross-border movements, with an average quarterly trade value of GH¢2 billion in exports and GH¢1.7 billion in imports.
4. Regional Disparities: Winners and Losers
The survey reveals regional trade imbalances, with some areas net exporters while others face persistent deficits:
– Volta, North East, Northern, and Oti regions recorded consistent trade deficits, importing more than they exported.
– Greater Accra and Ashanti regions emerged as key trade hubs, benefiting from high volumes of both exports and imports.
5. Rising Food Trade Deficit: A Growing Concern
One of the most alarming trends is the doubling of Ghana’s food trade deficit from GH¢400 million in Q1 to GH¢800 million in Q3 2025. This sharp increase highlights:
– Over-reliance on imported staples (rice, cooking oil, livestock).
– Weaknesses in domestic agricultural value chains, particularly in border-adjacent regions.
Dr. Iddrisu emphasized the need for targeted interventions:
“We must prioritize local production of high-demand goods like rice, cooking oil, and livestock. Investing in border-region value chains and small-scale trader support will not only reduce deficits but also boost regional economic resilience.”
Policy Recommendations: Bridging the Formal-Informal Divide
The GSS report calls for systematic reforms to integrate informal trade into Ghana’s economic framework:
- Simplification of Registration & Licensing
- Reduce bureaucratic hurdles for small-scale traders to operate legally.
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Introduce streamlined digital registration systems to track informal trade flows.
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Border Infrastructure Upgrades
- Improve road networks, customs clearance, and market facilities at key border points.
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Enhance security and sanitation to foster trust among informal traders.
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Data Sharing & Institutional Coordination
- Strengthen collaboration between the Ghana Revenue Authority (GRA), Ghana Immigration Service, and regional trade bodies.
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Develop real-time trade monitoring systems to capture informal transactions without stifling market activity.
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AfCFTA Alignment & Regional Integration
- Leverage the African Continental Free Trade Area (AfCFTA) to standardize trade rules and reduce informal trade barriers.
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Promote cross-border value chains to increase Ghana’s competitiveness in regional markets.
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Investment in Domestic Agricultural Production
- Expand subsidy programs for high-demand crops (e.g., rice, maize).
- Support agro-processing industries to reduce reliance on imports.
Support & Methodology
The survey was conducted with partnerships from:
– Government of Ghana
– World Bank (via the Harmonising and Improving Statistics in West Africa Project – HISWAP)
– Ghana Revenue Authority (GRA)
– Ghana Immigration Service
The comprehensive data collection across 206 border points ensures high reliability, though the persistent informal nature of trade means some undercounting remains inevitable.
Conclusion: A Call for Strategic Action
Ghana’s informal cross-border trade is not just a statistical anomaly—it is a vital economic lifeline that demands structured recognition and policy intervention. By formalizing key aspects while protecting small traders, Ghana can harness this sector’s potential to drive inclusive growth, reduce trade deficits, and strengthen regional economic ties**.
As Dr. Iddrisu noted:
“Informal trade is not a problem to be eradicated—it is an opportunity to be managed, regulated, and elevated into a formalized economic pillar.”
The path forward requires bold reforms, regional cooperation, and sustained investment—ensuring that Ghana’s shadow economy becomes a sunshine sector for sustainable development.