The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have agreed on a series of measures to strengthen the protection of Ghana’s informal retail sector, which is reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).
The roadmap was developed at a strategic meeting convened under the directive of the Ministry of Trade, Agribusiness and Industry (MoTAI) and led by the Chief Executive Officer of GIPA, Mr Simon Madjie.
The meeting focused on strengthening monitoring and enforcement mechanisms to prevent the unauthorised entry of non-Ghanaians into the informal retail sector.
It brought together GIPA Deputy Chief Executive Officer, Mr Abdul Razak Baba; national executives of GUTA; representatives of the Internal Trade Unit of MoTAI; and senior officials of GIPA.
Informal retail reserved for Ghanaians
Addressing the meeting, Mr Madjie reaffirmed that informal retail activities, including open markets, small shops, kiosks and similar forms of trading, are legally reserved exclusively for Ghanaian citizens.
He said Ghana remained open to foreign investment in the formal retail sector, including malls and supermarkets, but stressed that 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.
He said the distinction between the formal and informal retail sectors must be clearly understood and respected to ensure that Ghanaian traders were not displaced from activities legally reserved for them.
GUTA raises concerns over fronting
A major concern raised during the meeting was the growing practice of fronting, in which Ghanaian citizens allegedly 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.
GUTA President, Mr Clement Boateng, said the association was not opposed to legitimate foreign investment and welcomed foreign businesses that operated within the confines of Ghanaian law.
“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.
He called for stronger enforcement of the law to deal with individuals and businesses that sought to circumvent the restrictions through fronting arrangements.
Sanctions under Act 1117
The meeting also considered the sanctions contained in the GIPA Act, 2026 (Act 1117), for breaches of the restrictions governing reserved activities.
Under Section 56(3) of the Act, a non-citizen or a 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 additional penalties of up to GH¢12,000 for every month that the breach persists.
The Act also provides criminal sanctions for other forms of non-compliance.
Section 55(1)(a) makes it an 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.
Inter-agency task force
As part of the way forward, GIPA and GUTA proposed the revival and strengthening of an inter-agency task force to coordinate enforcement activities across the country.
The proposed task force would bring together GIPA, MoTAI, local government authorities, security agencies and other relevant regulatory bodies.
The organisations said a coordinated approach would help address gaps in enforcement and ensure that reports of violations were investigated and acted upon promptly.
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 operations and fronting.
Public education
GIPA and GUTA further proposed a joint public education campaign to raise awareness about Ghana’s informal retail regulations and the legal obligations of foreign investors.
The campaign would also educate traders, business owners and the general public on the channels available for reporting suspected violations.
The two organisations believe greater public awareness would complement enforcement efforts by enabling traders and communities to better identify and report activities that contravene the law.
Diplomatic engagement
The meeting also considered diplomatic engagement with foreign missions in Ghana as part of efforts to prevent violations by foreign nationals.
The initiative, which would be led by the Minister for Trade in collaboration with the Ministry of Foreign Affairs, would seek to clarify Ghana’s legal position to diplomatic missions, explain the country’s obligations under ECOWAS arrangements and encourage partner countries to sensitise their nationals on the need to comply 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.
The two organisations said sustained cooperation, stronger enforcement and public education would be critical to ensuring that the informal retail space remains accessible to Ghanaian citizens as provided by law.
