The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have agreed on a collaborative roadmap to protect Ghana’s informal retail sector, which is reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).
The agreement was reached at a strategic meeting convened at the instance of the Ministry of Trade, Agribusiness and Industry (MoTAI) to strengthen oversight and prevent unauthorised foreign participation in the informal retail sector.
The meeting was led by the Chief Executive Officer (CEO) of GIPA, Mr Simon Madjie, and attended by the Deputy CEO of GIPA, Mr Abdul Razak Baba; national executives of GUTA; representatives of the Internal Trade Unit of MoTAI; and senior GIPA officials.
Mr Madjie reaffirmed that informal retail activities, including trading in open markets, small shops and kiosks, were reserved exclusively for Ghanaian citizens.
He said although Ghana remained open to foreign investment in the formal retail sector, including malls and supermarkets, foreign investors were required to comply fully 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 stressed.
During the meeting, the GUTA leadership raised concerns about the growing practice of fronting, in which 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.
The President of GUTA, Mr Clement Boateng, said the association was not opposed to lawful foreign investment.
“We are not against foreigners. If you satisfy the law, we have no issue with you. But 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,” he said.
Participants also discussed sanctions under 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, in addition to a monthly penalty of between 500 and 1,000 penalty units for as long as the violation continues.
At the current statutory rate of GH¢12 per penalty unit, offenders could face an initial penalty ranging from GH¢60,000 to GH¢120,000, with an additional penalty of up to GH¢12,000 for each month the breach continues.
Section 55(1)(a) of the Act also makes it a criminal offence for a person or enterprise to let or sublet a market stall or store to a foreigner for trading purposes. Upon summary conviction, offenders may be fined between 2,000 and 4,000 penalty units.
At the end of the meeting, GIPA and GUTA proposed the revival and strengthening of an inter-agency task force comprising GIPA, MoTAI, local government authorities, security agencies and other regulatory bodies to coordinate enforcement efforts.
They also agreed to explore the establishment of a dedicated monitoring and enforcement unit, supported by a direct reporting mechanism through which traders could report suspected cases of foreign-owned informal retail businesses and fronting.
