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).
The strategic meeting, convened under the directive of the Ministry of Trade, Agribusiness and Industry (MoTAI) and led by the Chief Executive Officer of GIPA, Simon Madjie, focused on strengthening oversight mechanisms and preventing unauthorised entry into the informal retail sector.
The meeting 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.
Informal Retail Sector Reserved for Ghanaians
Addressing the meeting, Mr Madjie reaffirmed that the informal retail sector, including open markets, small shops, kiosks and similar trading activities, is reserved exclusively for Ghanaian citizens.
He emphasised that while Ghana remains 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.
Concerns Over Fronting and Enforcement of Act 1117
During the discussions, GUTA leadership raised concerns about the growing 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.
Speaking on the issue, GUTA President Clement Boateng clarified that the association supports 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 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, 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 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 Way Forward
At the conclusion of the meeting, GIPA and GUTA proposed reviving and strengthening an inter-agency task force comprising GIPA, MoTAI, local government authorities, security agencies, and other regulatory bodies to coordinate enforcement efforts.
The two organisations also agreed to explore establishing a dedicated monitoring and enforcement unit, supported by a direct reporting mechanism through which traders can report suspected cases of foreign-owned informal retail operations and fronting.
In addition, they proposed a joint public education campaign to raise awareness of Ghana’s informal retail regulations, the legal obligations of foreign investors and the available channels for reporting suspected violations
The meeting further 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 initiative aims to clarify Ghana’s legal position, explain its ECOWAS obligations and encourage partner countries to sensitise their nationals on 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.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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