GIPA, GUTA Move To Protect Informal Retail Sector

Officials of GIPA and GUTA

 

The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have outlined a collaborative roadmap to safeguard nation’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 the unauthorised entry of foreigners 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, 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 were required to comply fully with the country’s investment laws.

During the discussions, GUTA leadership raised concerns about the growing practice of fronting, whereby 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.

GUTA President, Mr. Clement Boateng, explained that the association supported 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.

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.

 

A Business Desk Report

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