Ghana signs Accra Convention to unlock trade financing for SMEs

Ghana has become the first nation to sign the United Nations Convention on Negotiable Cargo Documents, widely known as the Accra Convention. The historic signing, which took place alongside the 60th anniversary of the UN Commission on International Trade Law (UNCITRAL), positions Ghana at the forefront of a global effort to harmonise trade documentation. Minister for Trade Elizabeth Ofosu-Adjare signed the treaty on behalf of the government, leading a group of 26 countries in adopting a framework designed to bridge Africa’s massive trade finance gap, estimated at between $74 billion and $92 billion.The convention introduces a legal framework that treats electronic cargo documents with the same legal weight as traditional paper records. This shift is expected to transform how businesses, particularly small and medium-sized enterprises (SMEs), access credit. Under the new rules, cargo in transit across various transport modes—including sea, air, and land—can be used as collateral for loans. By providing negotiable documents for goods, the treaty offers protection to both buyers and financial institutions, reducing the legal uncertainties that often prevent banks from lending to cross-border traders.To fully implement the treaty, Minister Ofosu-Adjare announced that the government will initiate a comprehensive review of Ghana’s commercial and transport laws. These reforms will impact several key areas, including the Sale of Goods Act, electronic transactions, and secured lending regulations. The Ministry of Trade plans to collaborate with other governmental bodies to fast-track the domestic ratification process and update the national legal architecture to support the transfer of rights to cargo in transit.Beyond the legislative changes, the government intends to pilot the use of these negotiable cargo documents within selected trade corridors to test the system’s efficiency. This move is seen as a critical step in supporting the African Continental Free Trade Area (AfCFTA) by facilitating smoother intra-African trade and enhancing economic integration. By being an early adopter, Ghana aims to set a standard for the continent, encouraging other nations to ratify the convention and collectively address the financing hurdles that have long hampered indigenous industrialization and regional commerce.