Finance Minister Dr Cassiel Ato Forson has announced the deployment of Artificial Intelligence (AI) systems at Ghana’s ports to combat smuggling, under invoicing, and misclassification that have cost the country billions in lost revenue.

Presenting the 2026 budget to Parliament on Thursday, November 13, Dr Forson revealed that government will adopt AI to reduce human involvement in revenue assessments, validate country of origin, and ensure accurate classification and valuation of imports.

The minister disclosed widespread abuse in Ghana’s import declaration system. Between April 2020 and August 2025, over 525,000 transactions valued at US$83 billion were processed through import declaration forms, yet only 10,440 involved actual imports. About US$31 billion was transferred abroad without any goods entering the country.

Dr Forson described the situation as not a loophole but an organised system for exploitation. These practices drained reserves, weakened the cedi, and denied the state revenue needed for schools, roads, and hospitals.

Individuals and institutions implicated in the transactions have been referred to the Attorney General, the Economic and Organised Crime Office (EOCO), the Financial Intelligence Centre (FIC), and the Criminal Investigations Department (CID) for investigation.

The AI driven inspection initiative represents a major technological intervention in governance and revenue mobilization. Government will implement a four part strategy deploying AI to validate import classifications and country of origin documentation, minimizing human discretion in valuation processes.

An Advanced Cargo Information system will require pre arrival shipment manifests at least 24 hours before vessels depart origin ports, enabling earlier risk assessments and reduced documentation fraud. The system aims to detect under invoicing and misclassification before goods arrive in Ghana.

Ghana imported goods worth GH¢204 billion in 2024 but only GH¢85 billion was taxable, highlighting massive revenue leakages. The goal is to boost customs efficiency, protect national security, and ensure every import generates appropriate revenue for national development.

Enhanced anti smuggling surveillance will be established across inland and maritime borders while restructuring Customs Division operations through staff rotations and decentralization. The Bank of Ghana will now match every foreign exchange transfer to verified import data.

Container arrivals at Tema Port have dropped from 2,000 monthly to about 1,000 in recent months, according to industry reports. The decline coincides with increased container volumes at Togolese ports, suggesting importers are rerouting goods through neighbouring countries to evade taxes.

The Food and Beverages Association of Ghana (FABAG) estimates the country loses several billion cedis annually or over 300,000 containers worth of revenue to smuggling through both official and unapproved entry points. Rice, cooking oil, sugar, alcoholic beverages, and textiles are being extensively smuggled through Ivorian and Togolese borders.

Coca Cola Managing Director Felix Gomis reported in April 2025 that over US$700,000 worth of products, approximately 150,000 crates, are smuggled from Nigeria into Ghana monthly. The illicit activity harms local businesses and communities while draining government revenue.

Tema Port processed about 1.67 million containers in 2024, generating an estimated US$10 billion in potential Customs revenue. However, ministry data from July 2025 showed Ghana recorded a Customs revenue deficit of GH¢1.6 billion in the first half of the year, attributed to under declaration, misclassification and smuggling.

Smuggled goods sell below market prices because they avoid taxes, making it difficult for legitimate businesses to compete. Untaxed imports undermine local industries, reduce government revenue, and create unfair market conditions for compliant traders.

The AI system will use machine learning algorithms to predict routes taken by smugglers and monitor cargo movements to detect violations of customs laws. The technology analyzes data derived from satellite imagery, drones, and Automatic Identification Systems (AIS) to detect anomalies and predict illegal activities.

Government aims to strengthen monitoring of import related transfers to prevent future losses. The comprehensive approach combines technology deployment with structural reforms in the Customs Division to reduce opportunities for human manipulation and corruption.

Dr Forson emphasized that the reforms are designed to make Ghana’s tax system fairer and more growth oriented. The measures will strengthen revenue mobilisation while ensuring greater transparency at the ports.

Industry groups have called for a comprehensive review of Ghana’s import tax regime, arguing that high import duties and cumbersome port procedures drive the smuggling trend. Business associations want reforms that balance revenue needs with business competitiveness.

The AI deployment forms part of broader efforts to modernize Ghana’s maritime strategy and strengthen border controls. With increasing digitization in maritime operations, AI driven systems can protect critical infrastructure and safeguard sensitive data from cyber threats.

The technology represents a shift from traditional inspection methods that rely heavily on human judgment to data driven systems that can process vast amounts of information quickly and identify patterns invisible to manual review.