Accra: The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have reached an agreement on implementing strategies to safeguard the interests of Ghanaian-owned informal retail businesses. The agreement emphasizes enhanced monitoring and enforcement, public education, and a reporting system for suspected violations of laws that reserve certain business activities for Ghanaian citizens.
According to Ghana News Agency, the agreement was announced after a meeting organized under the Ministry of Trade, Agribusiness and Industry's directive. The meeting was led by Simon Madjie, Chief Executive Officer of GIPA, with support from Abdul Razak Baba, Deputy Chief Executive Officer. Attendees included national executives of GUTA, representatives from the Internal Trade Unit of the Ministry, and senior GIPA officials.
Concerns were raised during the meeting about the practice of Ghanaians acting as fronts for foreign nationals, thereby masking foreign ownership or control of businesses in sectors reserved for citizens or subject to higher capital requirements. GIPA and GUTA affirmed their dedication to protecting the livelihoods of those in the informal retail sector, upholding Ghana's investment laws, and fostering a fair business environment.
Simon Madjie reiterated that informal retail activities such as open markets, small shops, and kiosks are exclusively reserved for Ghanaians under the GIPA Act, 2026 (Act 1117). He also noted that while Ghana welcomes foreign investment in the formal retail sector, compliance with the country's investment laws is mandatory.
The GIPA CEO committed to collaborating with GUTA and relevant authorities to address the issue of Ghanaians fronting for foreign companies. Clement Boateng, CEO of GUTA, expressed support for lawful foreign investment, emphasizing that compliance with the law is essential for foreign entities wishing to operate in Ghana.
Under the GIPA Act, non-citizens or enterprises that engage in reserved activities face penalties ranging from GHS60,000 to GHS120,000, with additional monthly penalties for ongoing violations. The law also criminalizes the subletting of market stalls to foreigners for trading, punishable by fines.
GIPA and GUTA plan to revive and strengthen an inter-agency task force to ensure compliance, establish a monitoring and enforcement unit, and create a direct reporting mechanism for traders to report suspected violations. They also intend to launch a joint public education campaign on informal retail regulations and the legal obligations of foreign investors. Additionally, diplomatic engagement with foreign missions in Ghana is planned to clarify legal obligations under the Economic Community of West African States (ECOWAS) framework.