Ghana has become the first country to sign the United Nations Convention on Negotiable Cargo Documents, joining 25 other countries in an international initiative to expand trade financing, modernise cargo documentation and reduce legal barriers to cross-border commerce.
The agreement, known as the Accra Convention, was opened for signature in Accra to establish a new legal framework for negotiable cargo documents used in road, rail, air and maritime transport.
The initiative seeks to enable businesses to use goods in transit more effectively in commercial transactions and financing arrangements.
The signing represents an important milestone in Ghana’s efforts to strengthen its position in international trade and logistics.
However, signing the Convention is distinct from ratifying it, and its commercial benefits will depend on domestic legal reforms, financial sector participation and the development of systems that businesses can use in practice.
“The Convention would address longstanding challenges that have limited businesses, particularly small and medium-sized enterprises, from accessing finance using goods in transit as collateral.”
Minister for Trade, Hon. Elizabeth Ofosu-Adjare
Trade Finance Reforms Target Businesses
Speaking on behalf of President John Dramani Mahama, Trade Minister Elizabeth Ofosu-Adjare said the Convention would address a structural weakness in international commerce: the limited ability of businesses to use cargo documents associated with non-maritime transport as instruments for securing financing.
Under established maritime trade practices, negotiable bills of lading can represent rights to goods and facilitate transactions while shipments remain in transit. Comparable arrangements have not been consistently available across road, rail and air transport, creating legal and commercial difficulties for businesses that depend on these modes.
The implications are particularly significant for Africa, where the minister cited estimates indicating that road transport accounts for between 80 and 90 per cent of freight movement.
A legal framework extending negotiable cargo documentation across transport modes could therefore benefit businesses operating in domestic distribution, regional trade and international supply chains.
Access to finance remains a major constraint. Africa’s trade finance gap was estimated at between US$74 billion and US$92 billion in 2024, reflecting the substantial difference between financing sought by businesses and the funding available to support their transactions.
Intra-African trade accounted for approximately 14.4 per cent of the continent’s total trade in 2024, according to figures cited at the ceremony.
These challenges underscore the importance of addressing not only tariffs and border procedures but also the financial and legal obstacles that restrict businesses from trading across national markets.
The Convention could help eligible businesses use negotiable cargo documents to establish rights over goods in transit and support financing applications.
For small and medium-sized enterprises, this may provide an additional route to working capital, particularly where conventional collateral is difficult to obtain.
Nevertheless, the framework does not automatically guarantee loans. Banks will still assess borrowers’ creditworthiness, the value and condition of goods, repayment capacity and the enforceability of their security interests.
“The Convention would allow negotiable cargo documents to serve as documents of title across different modes of transport, protect parties relying on them in good faith and give electronic documents the same legal effect as paper versions.”
Minister for Trade, Hon. Elizabeth Ofosu-Adjare
Digitalisation Could Cut Trade Costs
The Convention also seeks to establish legal recognition for electronic negotiable cargo documents, giving them the same legal effect as paper versions when the Convention’s requirements are satisfied.
This provision could help businesses move away from documentation processes that depend on the physical preparation, delivery and verification of paper instruments. Electronic documents can support faster exchanges among exporters, importers, shipping companies, freight forwarders, customs authorities and banks.
For businesses moving goods across several countries, more predictable documentation rules could reduce administrative friction, improve transaction visibility and support the transfer of rights over cargo during transit.
Financial institutions could also benefit from clearer rules governing the legal status of documents presented in support of trade financing.
However, these advantages will depend on effective identity verification, secure electronic systems, reliable records and safeguards against fraud or competing claims over the same goods.
Ghana has indicated that implementation will require a review of domestic laws governing transport, the sale of goods, evidence, electronic transactions and secured lending.
The minister announced plans to pilot negotiable cargo documents with the Ghana Shippers’ Authority, the Ghana Ports and Harbours Authority, the Customs Division of the Ghana Revenue Authority and banks.
The proposed pilot could help participating institutions test operational procedures, identify legal or technical gaps and assess how cargo documents can be integrated into existing financing and logistics processes.
For Ghanaian exporters and importers, the commercial value will depend on whether lenders accept the documents, transport operators can issue them reliably and businesses can use them across the jurisdictions involved in their transactions.
Minister for Trade, Hon. Elizabeth Ofosu-Adjare
“The Convention would help reduce legal uncertainty, facilitate trade finance, strengthen supply chains and support digital trade, particularly as African countries deepen regional integration under the African Continental Free Trade Area.”
The ultimate measure of success will be whether the Convention helps unlock financing, reduces documentation-related delays and makes cross-border transactions more predictable.
Its contribution to trade growth will depend on effective implementation and the willingness of financial institutions and commercial operators to use the new framework.
READ ALSO:Israel Votes As Netanyahu Faces Tight Race For Knesset
