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).

🇬🇭 Here's What Happened

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.

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.

📌 Key Details

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.

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.

📰 Source: Joy Online Ghana