Business Corruption

A fairly high percentage of companies surveyed by the World Bank & IFC Enterprise Surveys 2007 report that corruption occurs in relation to obtaining import licences. Business executives surveyed by the World Economic Forum Global Enabling Trade Report 2010 point out that time-consuming bureaucracy related to trade across borders opens the way for public officials to demand bribes in Ghana. For example, trade is impeded by customs procedures that lack efficiency, and exporting and importing require time-consuming paperwork to clear goods at the border. Corruption and bribery in these processes are not uncommon.

This perception is corroborated by Global Integrity 2009, according to which, trading route check points in Ghana foster corruption and have caused unnecessary hurdles. According to the report, bribery is common when dealing with customs officers; thus, most drivers reserve extra money for bribes to border security officials because those who refuse making payments are refused further movement.

On the other hand, smuggling operations in Ghana are supposedly on the decline in many areas due to a comprehensive campaign by the police and the Customs, Excise and Preventive Service (CEPS). Ghana News Agency stated in 2007 that drivers report that vehicles are increasingly seized by customs, which makes smuggling a risky activity. Some drivers also claim that they are required to pay unofficial fines to security personnel on their routes to get their vehicles released. Nevertheless, according to Armah 2008, for many, the risks of smuggling goods in and out of Ghana continue to outweigh the transportation and transaction costs that legal trade entails. Moreover, according to Global Integrity 2008, corruption reportedly remains commonplace in the CEPS and the institution has come to be known as a 'gold mine' for most of its staff. CEPS officials in border areas reportedly accept bribes from goods smugglers to permit them to avoid the official excise duties related to import and export. Customs activities at the Free Trade Zone at Tema have also led to much criticism.

Frequency

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods requires 6 documents and takes 19 days at a cost of USD 1,013 per container.

- A standard import shipment of goods requires 7 documents and takes 29 days at a cost of USD 1,203 per container.

Transparency International: Global Corruption Barometer 2010:
- 49.1% of households who had contact with the customs authorities throughout 2009 report to have paid a bribe.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Ghana a score of 3.4 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

- Business executives give the transparency of border administration (pervasiveness of undocumented extra payments or bribes connected with imports and exports) a score of 3.1 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

Transparency International: Bribe Payers Index 2008:
- Surveyed Business executives perceived customs to be one of the most corrupt among a number of institutions and assigned it a score of 4.1 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2007:
- 38.8% of companies report that they expect to give gifts in order to obtain an import licence.