Ghana’s informal cross-border trade with neighbouring countries reached GH¢7.4 billion in the fourth quarter of 2024, according to new data released by the Ghana Statistical Service (GSS).
The figure represents 4.3 percent of Ghana’s total trade during the period, underscoring the economic significance of unrecorded commercial activity across the country’s borders.
The findings are based on the first national Informal Cross-Border Trade (ICBT) Survey, which monitored trade activities outside formal customs systems. The survey covered 321 active border points across ten regions between October and December 2024, using direct observation and interviews with traders.
Food dominates informal trade
Food items dominated the informal trade sector, accounting for 49.6% of imports and 41% of exports, highlighting the sector’s role in regional food supply and livelihood sustenance.
Top informal exports included alcoholic drinks (GH¢187 million), soft drinks (GH¢170 million), petrol, and second-hand clothing. The leading imports were cooking oil (GH¢270 million), mattresses (GH¢171 million), rice (GH¢143 million), and livestock (GH¢159 million).
Trade relations with neighbours
Ghana recorded a trade surplus of GH¢576 million with Burkina Faso and GH¢378 million with Côte d’Ivoire, but a deficit of GH¢539 million with Togo.
Informal trade accounted for 61.2% of total trade with Togo, 55.7% with Côte d’Ivoire, and 37.1% with Burkina Faso — showing how critical informal exchanges remain in sub-regional commerce.
Regional and gender insights
The Upper East Region emerged as Ghana’s busiest informal trade corridor, recording GH¢1.27 billion in exports — about fifteen times more than the Savannah Region’s GH¢82.9 million. The Paga border post was identified as the most active route for informal imports.
Gender analysis revealed that 65.7% of exporters were men, while 41.3% of importers were women, particularly concentrated in the Savannah, Western, and Northern regions.
Most traders relied on tricycles and motorbikes as their primary means of transportation, reflecting the small-scale and high-frequency nature of informal trade.
Policy implications
The GSS stressed that informal trade remains vital for ensuring food security, livelihoods, and regional economic integration, especially in border communities with limited access to formal jobs.
However, it cautioned that the sector poses challenges such as reduced tax revenue, weak infrastructure, and limited protection for traders.
The Service recommended that government:
- Simplify registration and provide microcredit to encourage formalisation;
- Improve border infrastructure and inspection systems;
- Enhance regional cooperation to harmonise customs procedures; and
- Promote local production of key imports like rice, cooking oil, and mattresses.
Bridging the data gap
Government Statistician Dr. Alhassan Iddrisu said the survey data would help build a more inclusive and evidence-based economic framework.
“By measuring informal trade systematically, we are strengthening the foundation for better economic planning,” he said.
“Informal trade is part of everyday life for many Ghanaians, and recognising its value allows us to understand its contribution to livelihoods.”
The GSS added that integrating informal trade data into national accounts will enable Ghana to bridge the gap between formal and informal economies, enhance participation under the African Continental Free Trade Area (AfCFTA), and strengthen regional trade policy.
