Accra: The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have outlined a collaborative roadmap to safeguard Ghana's informal retail sector, which is reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).
According to Ghana Web, the strategic meeting was convened under the directive of the Ministry of Trade, Agribusiness and Industry (MoTAI) and led by the Chief Executive Officer of GIPA, Simon Madjie. The focus was on strengthening oversight mechanisms and preventing unauthorized entry into the informal retail sector. The session was attended by GIPA Deputy Chief Executive Officer Abdul Razak Baba, national executives of GUTA, representatives from MoTAI's Internal Trade Unit, and senior GIPA officials.
Addressing the meeting, Madjie reaffirmed that the informal retail sector, which includes open markets, small shops, kiosks, and similar trading activities, is reserved exclusively for Ghanaian citizens. He emphasized that while Ghana remains open to foreign investment in the formal retail sector, including malls and supermarkets, foreign investors must fully comply with the country's investment laws. 'The informal retail space by law is reserved exclusively for citizens of Ghana, and that is non-negotiable,' Madjie stated.
During the discussions, GUTA leadership raised concerns about the practice of fronting, where Ghanaian citizens lend their names or companies to conceal foreign ownership or control of businesses operating in sectors reserved for Ghanaians or subject to higher capital requirements. GUTA President Clement Boateng clarified that the association supports lawful foreign investment but insisted on stopping unlawful activities.
Participants also discussed the sanctions outlined in the GIPA Act, 2026 (Act 1117). Under Section 56(3), a non-citizen or non-wholly Ghanaian-owned enterprise that engages in a reserved activity is liable to an administrative penalty of between 5,000 and 10,000 penalty units, with additional monthly penalties. Furthermore, Section 55(1)(a) of the Act makes it a criminal offence to let or sublet a market stall or store to a foreigner for trading purposes, with fines upon conviction.
At the conclusion of the meeting, GIPA and GUTA proposed reviving and strengthening an inter-agency task force to coordinate enforcement efforts. They also agreed to explore establishing a dedicated monitoring and enforcement unit supported by a direct reporting mechanism for traders to report suspected violations.
Additionally, a joint public education campaign was proposed to raise awareness of Ghana's informal retail regulations and the legal obligations of foreign investors. The meeting also considered diplomatic engagement to clarify Ghana's legal position and encourage compliance with Ghanaian laws.
GIPA and GUTA reaffirmed their commitment to continued collaboration to protect livelihoods in the informal retail sector, uphold Ghana's investment laws, and promote a fair, orderly, and lawful business environment.