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Retail trading has long been one of Ghana’s most vibrant business sectors, providing employment for millions and serving as the lifeline of local economies. From corner shops tucked within neighbourhoods to open markets, supermarkets, and now sprawling shopping malls, retail trade has evolved remarkably over the past few decades. This transformation reflects Ghana’s growing urbanization, middle-class expansion, and changing consumer habits.
In the 1970s and 1980s, retail business in Ghana was largely dominated by small family-owned corner shops, table-top traders, and market women who served as the backbone of the informal economy. These local shops sold groceries, household items, and clothing, often on credit to community members.
With the liberalization of the economy in the 1990s and the gradual growth of consumer income, Ghana witnessed the rise of structured retail outlets such as MaxMart, Koala, Palace, and later, the Melcom Group, which established itself as the leading local retail chain with branches across the country. Melcom became synonymous with modern retailing, providing organized shelves, fixed prices, and a wide range of imported goods under one roof.
In recent years, a new wave of competition has entered Ghana’s retail landscape, the rise of Chinese-owned supermarkets and shopping malls, popularly branded as China Malls. These malls began modestly, with Chinese traders selling goods directly from trucks and vehicles. Over time, they expanded into large, well-stocked supermarkets strategically located in major cities such as Accra, Kumasi, Takoradi, and Tamale.
China Malls offer a wide variety of products; electronics, home appliances, furniture, footwear, toys, and beverages. These products are often priced slightly lower than those found in local corner shops. This pricing strategy, coupled with variety and attractive display, has made them appealing to the Ghanaian.
Beyond retail, Chinese investors have also established an industrial enclave at Afienya in the Greater Accra Region of Ghana, where they manufacture products such as car tyres, lubricants, soft drinks, refrigerators, air conditioners, and footwear. These factories supply the China Malls nationwide, creating an integrated production-to-consumer ecosystem.
The positive outcomes are visible. Thousands of Ghanaians are employed as factory hands, sales attendants, social media marketers, technicians, and drivers. Transport and logistics companies benefit from moving goods from factories to warehouses and retail outlets. Local suppliers of raw materials also gain new markets, while government earns tax revenue through levies and import duties.
Indeed, these developments contribute to economic vibrancy, particularly in localities hosting the factories and malls. Small eateries, transport operators, and accommodation services thrive as a result of the increased activity.
However, the rapid expansion of Chinese retail businesses raises legitimate concerns. Local corner shops, many of which operate on thin profit margins, are finding it increasingly difficult to compete with China Malls’ low pricing and bulk purchasing power. A similar trend has been observed in other African countries such as Zambia, Nigeria, and Kenya, where Chinese-owned retail chains have outcompeted indigenous traders, leading to the closure of small local shops.
When a single nationality or group dominates a key economic sector, there is a risk of market control, where pricing, supply, and product availability can be dictated externally. In Ghana’s case, if Chinese investors, who currently own these malls and factories 100%, continue to expand unchecked, they may gain significant leverage over local market conditions. This could stifle indigenous entrepreneurship and make the economy heavily dependent on foreign-controlled retail systems.
Another pressing issue is the treatment of Ghanaian workers in some of these establishments. Reports suggest that many are underpaid, overworked, and lack access to social security, pensions, or insurance benefits. Some recruitment is done through local agents who fail to comply with Ghana’s Labour Act, 2003 (Act 651), which mandates fair remuneration, safe working conditions, and contribution to the Social Security and National Insurance Trust (SSNIT).
Section 7 of the Labour Act explicitly provides for equal pay for equal work and the right to join trade unions. Employers are also required under Sections 63–65 to give notice and compensation for termination, and under Section 122, to pay social security contributions. Non-compliance with these laws undermines the very foundation of decent work and threatens the welfare of young Ghanaians entering the job market.
Ghana’s Foreign Exchange Act, 2006 (Act 723) and investment laws permit foreign companies to repatriate profits after meeting all tax obligations. While this policy attracts foreign investment, it can also lead to significant capital flight where large sums of money leave the country annually, depriving the local economy of reinvestment funds.
When profits from hundreds of Chinese-owned shops and factories are transferred to China rather than reinvested locally, the long-term impact can weaken Ghana’s balance of payments and slow domestic economic growth.
The government of Ghana must therefore adopt policies that strike a balance between foreign investment and local participation. Some key measures include:
Local Partnership Requirement: Encourage joint ventures where Ghanaian investors hold at least 30% ownership in large foreign retail operations.
Strict Enforcement of Labour Laws: The Ministry of Employment and Labour Relations should intensify inspections and ensure full compliance with SSNIT and minimum wage requirements.
Capacity Building for Local Retailers: Support small traders with access to credit, modern inventory systems, and digital payment platforms to make them more competitive.
Incentivize Local Manufacturing: Offer tax rebates to Ghanaian manufacturers who supply local supermarkets to reduce dependence on imports.
Fair Trade Regulations: Establish retail zoning or price monitoring systems to prevent predatory pricing that could collapse local shops.
The rise of Chinese malls and industries in Ghana presents both promise and peril.
While they have created jobs and stimulated local economies, they also threaten to marginalize indigenous traders and weaken local economic sovereignty. Policymakers must act now to create a framework that ensures foreign investment complements rather than replaces local enterprise.
Ghana’s goal should not be to shut out foreign investors but to ensure that investments, whether from China or elsewhere, builds the Ghanaian economy sustainably, protects the Ghanaian worker, and empowers the Ghanaian entrepreneur.
The author is a Journalist with passion for Africa’s transformation
Email: dannycentralpress@gmail.com
