Closing revenue gaps with digital infrastructure

By Michael Kofi FOSU

A recent transit fraud case has once again exposed structural weaknesses within Ghana’s customs architecture. What reportedly began as a GH¢2.6 million discrepancy escalated into a potential revenue exposure of more than GH¢85 million. Beyond the headline figure lies a more troubling reality: systemic gaps that continue to create opportunities for revenue leakages in an increasingly sophisticated trade environment.

The consignment in question — eighteen articulated trucks declared as goods in transit to Niger — allegedly attempted to bypass mandatory Customs human escorts. Subsequent interception by the Ghana Revenue Authority (GRA) reportedly uncovered significant misdeclaration of value, classification and weight. Had the scheme succeeded, the implications would have extended beyond foregone duties. Untaxed goods entering the domestic market distort competition, penalise compliant businesses and weaken public confidence in regulatory institutions.

The swift action taken by the GRA deserves recognition. Yet the episode reinforces a critical lesson: enforcement alone cannot substitute for systemic resilience. Ghana must modernise from reactive control mechanisms to preventive, technology-driven safeguards. Digital Public Infrastructure (DPI) provides the framework for such transformation.

The broader economic context

Domestic revenue mobilisation remains central to Ghana’s fiscal recovery strategy. With constrained external financing conditions and mounting developmental obligations, protecting customs revenue is not merely a compliance issue — it is macroeconomic policy in action.

Customs and trade taxes account for a significant share of government revenue. Leakages at ports and borders therefore translate directly into reduced fiscal space for infrastructure, education, healthcare and debt management. In this context, digital reform is not optional innovation; it is economic necessity.

Where the system breaks down

Three systemic weaknesses typically underpin such fraud schemes:

1. Information asymmetry – Customs authorities often operate with fragmented datasets. When shipping manifests, invoices, weighbridge readings and declarations are not seamlessly integrated, inconsistencies can be manipulated.
2. Human vulnerability – Manual overrides, paper-based documentation and opaque approval chains create environments where procedural breaches may occur undetected.
3. Delayed detection – Where monitoring is not real-time, fraudulent consignments may reach local markets before irregularities are uncovered.

Addressing these vulnerabilities requires architectural reform, not incremental patchwork.

Creating a national ‘Single Source of Truth’

A well-designed DPI framework would enable real-time, cross-institutional data verification.

• System integration –Once a Bill of Entry is submitted within ICUMS, it should automatically reconcile with shipping manifests, port data and verified supplier invoices.
• AI-driven risk analytics –Algorithms can flag abnormal pricing patterns, under-declared weights or suspicious routing.
• Digitally linked weighbridges and scanners –Automated systems reduce reliance on manual verification and prevent unauthorised release of cargo.

Such interoperability reduces discretion, strengthens transparency and accelerates legitimate trade flows.

Embedding digital identity and immutable audit trails

Institutional integrity improves when accountability becomes technologically embedded.

• Biometric authorisation –Every approval — whether by a customs officer or clearing agent — should require biometric authentication linked to a secure national digital identity.
• Immutable transaction logs –Distributed ledger technologies can record approvals in ways that prevent retrospective alteration.
• Supervisory dashboards –Real-time oversight tools enable management to detect unusual override patterns or risk clusters.

When every action leaves a permanent, traceable record, deterrence becomes structural rather than symbolic.

Smart transit monitoring through iot and geofencing

The alleged bypassing of mandatory escorts illustrates the limitations of human-dependent monitoring.

• GPS-enabled smart seals –Electronic seals linked to a central monitoring platform can track cargo movement in real time.
• Geofenced transit corridors –Deviations from approved routes trigger immediate alerts.
• Tamper detection systems –Any attempt to break or interfere with a seal generates automated enforcement notifications.

Automated monitoring reduces exposure to collusion and ensures continuous oversight across the transit lifecycle.

Securing suspended duties through digital escrow

Revenue assurance mechanisms can shift risk away from the state.

• Digital escrow accounts –Importers of transit goods could lodge suspended duties into secure, digitally managed accounts prior to departure.
• Conditional release mechanisms –Funds are released only upon verified exit of goods through designated border points.
• Automated forfeiture triggers –Failure to comply within stipulated timelines results in automatic duty transfer to the GRA.

This transforms “suspended exposure” into conditional, secured revenue — protecting the public purse even before enforcement action becomes necessary.

Complementing reform with capacity building

Technology alone is insufficient without institutional alignment. DPI reforms must be accompanied by:

• Continuous training of customs officials in digital risk analysis.
• Strong inter-agency collaboration between customs, ports authorities and financial institutions.
• Legislative updates to recognise digital records and automated enforcement mechanisms as legally binding.
• Public-private engagement to ensure traders understand compliance expectations.

Digital transformation succeeds when governance, law and human capacity evolve alongside infrastructure.

The strategic opportunity

Ghana has already made notable progress in digital identity, mobile payments and financial inclusion. Leveraging these foundations to strengthen customs administration would position the country as a regional leader in secure, technology-driven trade facilitation. The recent incident should serve as a reform catalyst rather than merely a cautionary tale. Strategic investment in Digital Public Infrastructure — encompassing identity systems, interoperable data platforms, IoT monitoring and smart payment safeguards — can simultaneously enhance revenue protection and ease of doing business.

Every cedi lawfully due to the state contributes to national development. By embedding digital accountability into customs operations, Ghana can shift from reactive enforcement to predictive prevention — closing loopholes before they escalate into fiscal shocks.

In an era where trade flows are global and fraud schemes increasingly sophisticated, resilience must be digital, systemic and future-ready.

>>>the writer is CEO of International Trade Finance and Payment Consultancy (ITFP). He can be reached via [email protected] and or +233 302 504680 / +233 208 301785

Post Views: 1