Accra, Aug. 18, GNA – The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have agreed on measures to protect Ghanaian-owned informal retail businesses.
The measures include stronger monitoring and enforcement, public education and a reporting mechanism for suspected breaches of laws governing activities reserved for Ghanaian citizens.
The agreement, GIPA said in a statement copied to the Ghana News Agency, followed a meeting convened under the directive of the Ministry of Trade, Agribusiness and Industry (MoTAI), led by Mr Simon Madjie, Chief Executive Officer of GIPA, with support from Mr Abdul Razak Baba, Deputy Chief Executive Officer.
The meeting was attended by national executives of GUTA, representatives of the Internal Trade Unit of MoTAI and senior GIPA officials.
The statement said concerns were raised about the practice of Ghanaians fronting for foreign nationals to conceal foreign ownership or control of businesses operating in sectors reserved for citizens or subject to higher capital requirements.
GIPA said it and GUTA reaffirmed their commitment to protecting livelihoods in the informal retail sector, upholding Ghana’s investment laws and promoting a fair, orderly and lawful business environment.
It said Mr Madjie reaffirmed that informal retail activities, including open markets, small shops and kiosks, were reserved exclusively for Ghanaians under the GIPA Act, 2026 (Act 1117).
It said he noted that Ghana remained open to foreign investment in the formal retail sector, including malls and supermarkets, but foreign investors were required to 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. Regardless of the amount of money you bring, you cannot enter the informal retail space because that market is reserved for Ghanaians,” Mr Madjie noted.
The statement said the GIPA Chief Executive Officer pledged to work with GUTA and relevant authorities to address the practice of Ghanaians fronting for foreign companies.
Mr Clement Boateng, Chief Executive Officer of GUTA, expressed the Association’s support for lawful foreign investment, saying, “we are not against foreigners. If you satisfy the law, we have no issue with you.”
He, however, added that, “if you do not satisfy the law, your activities in our markets must be stopped to allow citizens to have the freedom to do their retail business in the retail market space.”
Under the GIPA Act, 2026 (Act 1117), a non-citizen or non-wholly Ghanaian-owned enterprise engaging in a reserved activity is liable to an administrative penalty of between 5,000 and 10,000 penalty units.
The law also imposes an additional monthly penalty of between 500 and 1,000 penalty units for a continuing violation.
At the current statutory rate of GH¢12 per penalty unit, the initial penalty ranges from GH¢60,000 to GH¢120,000, with additional penalties of up to GH¢12,000 for each month the breach continues.
The statement said Section 55(1)(a) of the Act also made it a criminal offence for a person or
enterprise to let or sublet a market stall or store to a foreigner for trading purposes, punishable on summary conviction by a fine of between 2,000 and 4,000 penalty units.
GIPA and GUTA agreed to revive and strengthen an inter-agency task force comprising GIPA, MoTAI, local government authorities, security agencies and other regulatory bodies to coordinate enforcement.
They also agreed to establish a dedicated monitoring and enforcement unit, supported by a direct reporting mechanism through which traders could report suspected cases of foreign-owned informal retail operations and fronting.
The institutions also pledged to undertake a joint public education campaign on Ghana’s informal retail regulations, the legal obligations of foreign investors and channels for reporting suspected violations.
The meeting also considered diplomatic engagement, to be led by the Minister for Trade in collaboration with the Ministry of Foreign Affairs, with diplomatic missions in Ghana.
The statement said the engagement would clarify Ghana’s legal position, explain its obligations under the Economic Community of West African States (ECOWAS) framework and encourage partner countries to sensitise their nationals on compliance with Ghanaian laws.
GNA
Edited by Kenneth Sackey
Reporter: Francis Ntow
[email protected]
