The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have met to outline a collaborative roadmap to safeguard Ghana's informal retail sector, which is reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).
The meeting, convened under the directive of the Ministry of Trade, Agribusiness and Industry (MoTAI), focused on strengthening oversight mechanisms and preventing unauthorised entry into the informal retail sector.
The meeting, chaired by the CEO of GIPA, Simon Madjie, was attended by GIPA Deputy Chief Executive Officer, Abdul Razak Baba, national executives of GUTA, representatives of MoTAI's Internal Trade Unit and senior GIPA officials.
Addressing the meeting, Mr Madjie reaffirmed that the informal retail sector, including open markets, small shops, kiosks and similar trading activities, was reserved exclusively for Ghanaian citizens.
He emphasised that while Ghana remained open to foreign investment in the formal retail sector, including malls and supermarkets, foreign investors must 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.
Act 1117
During the discussions, GUTA’s leadership raised concerns about the growing practice of fronting, where Ghanaian citizens lent 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 GUTA President, Clement Boateng, speaking on behalf of the group, said while the association supported lawful foreign investment, it found it problematic, the actions by some Ghanaians who fronted for foreigners.
"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 stated.
Punishment
The participants also discussed the sanctions outlined in the GIPA Act, 2026 (Act 1117), Section 56(3), which prescribes the fine for non-citizens or non-wholly Ghanaian-owned enterprises that engaged in a reserved activity.
They stressed the need for the law to be strictly enforced to ensure compliance and discipline.
Presently, such offenders are 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 continued.
At the current statutory rate of GH¢12 per penalty unit, offenders may be required to pay an initial penalty ranging from GH¢60,000 to GH¢120,000, with additional penalties of up to GH¢12,000 for each month the breach persists.
Furthermore, Section 55(1)(a) of the Act makes it a criminal offence for any 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.
The meeting concluded with GIPA and GUTA proposing the revival and strengthening of the inter-agency task force comprising GIPA, MoTAI, local government authorities, security agencies and other regulatory bodies to coordinate enforcement efforts.
