Ghana to Roll Out Cargo Tracking System as VAT Reforms Loom and SME Lending Rates Remain High

Ghana’s economy is seeing major policy changes with the Ghana Revenue Authority (GRA) embracing digital systems, government confirming VAT reforms, and entrepreneurs raising concerns over steep lending rates. These developments carry significant implications for businesses, investors, and consumers alike.

GRA to Launch Advance Cargo Information System

The Ghana Revenue Authority (GRA) has announced plans to roll out an Advance Cargo Information (ACI) system before the end of 2025 to strengthen revenue collection and improve compliance.

According to Commissioner-General Anthony Sarpong, the initiative is modeled after the Advance Passenger Information (API) system currently in use at the airport. This digital tool monitors goods brought in by travelers and ensures that the appropriate taxes are paid even before flights land in Ghana.

The new cargo version will apply to imports through seaports and will track cargo inflows in real time. Officials believe the system will improve transparency, reduce leakages, and enhance compliance.

Deputy Finance Minister Thomas Nyarko Ampem stressed that the initiative reflects the government’s broader agenda to stabilize the economy, while tax experts such as George Ohene Kwatia of the Chartered Institute of Taxation, Ghana, urged policymakers to build simple and fair systems that encourage compliance.

VAT Rate to Drop to 20% from 2026

The effective Value Added Tax (VAT) rate is expected to be reduced from 22% to 20% in 2026, according to the Ministry of Finance.

Commissioner-General Anthony Sarpong disclosed that the upcoming VAT reforms will simplify Ghana’s tax structure, remove distortive levies such as the COVID-19 Health Recovery Levy, and streamline compliance.

Currently, businesses face a complex VAT system comprising:

• Standard VAT rate: 15%

• NHIL: 2.5%

• GETFund levy: 2.5%

• COVID-19 levy: 1%

This structure increases the final tax burden, but under the new reforms, the system will be simplified to bring relief to businesses.

Finance Minister Dr. Ato Forson is expected to present the new VAT bill to Parliament before the end of 2025, with implementation scheduled for January 2026. While some argue the 20% rate remains high, authorities maintain improved compliance could pave the way for further reductions.

High Lending Rates Stifling SMEs

The Ghana Chamber of Young Entrepreneurs (GCYE) has raised alarms over persistently high lending rates, which they say are suffocating small and medium enterprises (SMEs).

According to Bank of Ghana data, commercial banks currently offer loans at annualized percentage rates (APRs) ranging between 17% and 45%. While Republic Bank and Bank of Africa recorded some of the lowest rates (around 20-21%), others remain significantly higher.

GCYE CEO Sherif Ghali lamented that the cost of credit is eroding working capital and limiting expansion, especially for youth-led businesses. He urged the government and the Bank of Ghana to enforce policies that ensure reduced lending rates, support risk assessments, and expand digital credit modules.

Analysts warn that without intervention, Ghanaian SMEs could lose competitiveness within the sub-region.

Investor’s Insight: GOIL Hits Record High

Meanwhile, investors are keeping a close watch on GOIL’s stock, which has reached an all-time high with a 46.71% year-to-date (YTD) gain. Analysts attribute this rally to strong earnings growth and improved investor confidence in Ghana’s energy sector.

With the GRA advancing digitization, VAT reforms in the pipeline, and growing calls to ease SME financing, Ghana stands at a critical point in balancing fiscal discipline with private sector growth. If executed effectively, these reforms could boost compliance, ease the tax burden, and unlock opportunities for young entrepreneurs.

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