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Ghana’s Port Crisis: Labor Strikes and Utility Costs Endanger Economy

Ghana’s Port Crisis: Labor Strikes and Utility Costs Endanger Economy

The ongoing labor dispute at Tema Port, Ghana’s main maritime facility, is intensifying economic challenges, raising alarms about potential food security crises. The Food and Beverages Association of Ghana (FABAG) issued a severe warning on December 29, 2025, indicating that delays in cargo handling are prompting businesses to reroute shipments to the Port of Lomé in Togo.

This disruption is attributed to a strike by unskilled workers responsible for unloading ships, who ceased operations after unsuccessful negotiations regarding their compensation. Although port authorities have engaged temporary labor to alleviate the situation, FABAG describes this measure as inadequate and failing to meet the essential needs of the supply chain.

On December 8, FABAG criticized the recent utility tariff hike, describing it as “unjustifiable.” The combination of delayed cargo processing and escalating power costs is creating a precarious environment for local businesses.

The operational effectiveness at Tema Port has deteriorated sharply, with offloading capacity now at a mere 200 metric tonnes per day—down from the standard minimum of 2,000 metric tonnes. This decline has resulted in essential goods like rice and sugar being stuck on ships, causing significant delays in clearing these products and consequently raising prices for importers. An anonymous director from a prominent import firm in Accra expressed concern, stating, “We have ships stuck at the anchorage for weeks, and every day of delay increases costs, ultimately affecting consumers.”

These mounting expenses are already impacting local markets, contradicting recent government reports suggesting a decline in food inflation. Vendors in places like Kaneshie and Agbogbloshie are reporting rising prices, particularly for sugar, due to shipping delays. In a country where food comprises nearly 43% of the Consumer Price Index, these challenges represent an unrecognized burden for lower-income families.

The implications of the ongoing port strike extend beyond logistics; they threaten the livelihoods of many. Thousands are at risk as the ripple effect disrupts various sectors, including logistics and transport. Analysts warn that continued unrest could lead to significant job losses, jeopardizing the government’s “24-Hour Economy” initiative aimed at job creation through all-day operations.

The potential shift of cargo to Togo poses further risks to Ghana’s economic stability. The Port of Lomé has emerged as a competitive alternative, offering significantly lower handling charges. A trader highlighted the advantages, stating, “If I can clear my container in Lomé for nearly half the price, the decision is clear.”

FABAG previously estimated that smuggling costs the state GHS 300 million monthly, and the ongoing situation could exacerbate this issue if goods continue to be diverted, undermining regional trade regulations and national revenue.

This labor strike occurs during a critical juncture for the Ghanaian government, which has been promoting round-the-clock port operations. However, without resolving the labor dispute, these initiatives may falter. The Ghana Ports and Harbours Authority (GPHA) has committed to improving operational efficiency but faces criticism for not addressing worker compensation adequately.

FABAG is urging the highest levels of government to intervene, calling for immediate discussions among key stakeholders including the Director General of Tema Port, the Minister of Transport, and labor representatives. They emphasize that a prompt resolution is essential to restore efficient operations and alleviate financial strains.

Ultimately, resolving the crisis at Tema Port is crucial for Ghana’s aspirations as a regional logistics leader and for maintaining food security. For Togo, the potential influx of redirected cargo presents short-term benefits but highlights the need for cooperative trade practices. A stable Tema Port is vital not only for Ghana but for the broader West African region, underscoring the importance of efficient operations and respect for the workforce that supports these systems.

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