By: Nana Karikari, Senior Global Affairs Correspondent
A deepening labor crisis at Ghana’s premier maritime gateway is pushing the nation toward a fiscal and food security emergency. The Food and Beverages Association of Ghana (FABAG) issued a final warning on December 29, 2025, stating that persistent delays at the Tema Port are forcing businesses to consider diverting bulk and bagged cargo to the Port of Lomé in Togo.
The deadlock stems from a strike by unskilled laborers who traditionally handle the physical offloading of ships. These workers walked off the job following failed negotiations with port management over compensation rates. While authorities engaged temporary labor to bridge the gap, the association describes the intervention as “minimal” and insufficient to meet the country’s basic supply chain needs.
This warning follows a blistering December 8 statement where FABAG rejected “unjustifiable” utility tariff hikes. The association warns that the combination of port gridlock and soaring power costs is creating a lethal environment for the private sector.
Supply Chains Under Siege
The efficiency gap at the harbor has reached critical levels. FABAG reports that current offloading capacity has plummeted to approximately 200 metric tonnes per day, a staggering 90% drop from the usual minimum operational level of 2,000 metric tonnes.
This collapse is leaving essential commodities like rice and sugar stranded on vessels. The association noted that the reduced pace has led to “prolonged delays in clearing goods and driving up prices for importers,” which further inflates the cost of doing business. Importers are now being squeezed by daily fees for ships that cannot be emptied. “We have ships sitting at the anchorage for weeks. Every day of delay adds to the demurrage, and eventually, the consumer pays for it,” noted a director of a major Accra-based import firm, who spoke on the condition of anonymity. These rising costs are already trickling down to local markets.
The Utility “Cancer”: Tariffs Amid Inefficiency
The logistical bottleneck is compounded by what FABAG describes as a “cancer of inefficiency” within the utility sector. On December 8, the association rejected a 25.7% hike in utility tariffs, contrasting it against a mere 9% increase in public sector salaries. FABAG argues that the Public Utilities Regulatory Commission (PURC) is “punishing the public” to cover for the Electricity Company of Ghana (ECG).
The association highlighted alarming financial mismanagement, including an unauthorized GH¢189.2 million budget overrun by ECG. Furthermore, procurement spending reportedly escalated by 700%, jumping from under GH¢1 billion to over GH¢8.3 billion in 2023. “The ECG has become the very disease it was created to cure,” FABAG stated, noting that technical and commercial losses exceed 30%, ranking among the worst in Africa.
Market Reality
For ordinary Ghanaians, the technicalities of port tonnage translate directly into the cost of a dinner plate. While recent government data suggested food inflation had dipped in late 2025, vendors at the Kaneshie and Agbogbloshie markets tell a different story. “They say inflation is down, but the price of a bag of sugar keeps climbing because the ships aren’t moving,” one wholesaler remarked.
In a country where food costs make up nearly 43% of the Consumer Price Index, these delays act as a hidden tax on the poor. Small-scale business owners who rely on steady imports face a grim choice: raise prices or close shop. This dilemma threatens the consistent supply of staple products to the Ghanaian market.
Economic and Employment Impact
The standoff is more than a logistical hurdle; it is a direct threat to the livelihoods of thousands. Beyond the striking dockworkers, the “ripple effect of enterprise” that fuels the port economy is grinding to a halt. Analysts warn that if the disruption continues, it will trigger significant job losses across the logistics, warehousing, and transport sectors.
Additionally, the crisis puts the government’s flagship “24-Hour Economy” policy at risk. While the policy aims to create jobs through round-the-clock industrial activity, the current labor friction creates a “hollow victory.” Infrastructure exists, but the necessary human capital is absent. This instability erodes investor confidence and threatens the indirect jobs—from truck drivers to small-scale service providers—that depend on functional, 24-hour operations.
The Lomé Pivot and Competitive Threat
The shift to Togo presents a dual threat to national security and trade regulation. The Port of Lomé has positioned itself as a faster, more cost-effective rival, offering container handling charges that are between 44% and 58% lower than Tema’s. “If I can clear my container in Lomé for nearly half the price and truck it across the border faster than I can clear it in Tema, the choice is simple,” a cross-border trader explained.
FABAG previously estimated that smuggling already costs the state approximately GHS 300 million monthly. The association cautioned that if the Tema situation persists, the diversion of goods to Togo “could encourage attempts to smuggle goods back into the country.” This would occur through porous land borders, further undermining West African trade regulations and weakening national revenue.
Government Perspective and Policy Conflict
The strike comes at a sensitive time for the Ghanaian government. President John Mahama’s administration recently touted the transition of major ports to round-the-clock operations. However, the current labor dispute threatens this progress. The policy cannot succeed if the workforce is not at the table.
The Ghana Ports and Harbours Authority (GPHA) has emphasized its commitment to streamlining processes. Yet, the lack of a resolution on compensation suggests a disconnect. High-level policy seems out of sync with grassroots labor relations. To maintain its status as a regional leader, the state must reconcile its infrastructure ambitions with the welfare of its workers.
Demand for Executive Action
The association is calling for immediate intervention from the highest levels of government. FABAG has specifically directed its appeal to the Director General and Management of the Tema Port, the Minister of Transport, and labor representatives to urgently engage in dialogue.
“A swift and sustainable resolution is necessary to restore efficient port operations,” the association stated. The group insists that only urgent dialogue can “reduce unnecessary financial burdens and ensure the smooth flow of food and beverage supplies to the Ghanaian market.”
A Call for Regional Stability and Shared Prosperity
Fundamentally, the resolution of the Tema Port crisis is a litmus test for West African economic integration. For Ghana, it is about reclaiming its status as the regional logistics hub and protecting internal food security. For Togo, the potential influx of diverted cargo offers short-term gains but underscores the need for a collaborative rather than predatory regional trade environment. For the international community, a stable Tema Port ensures that one of Africa’s most vital corridors remains predictable. In the end, a thriving West Africa depends on ports that operate with mechanical efficiency and a labor compact that respects the dignity of the workers who keep the world moving.
