The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have agreed on a joint roadmap 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 agreement was reached at a strategic meeting convened under the direction of the Ministry of Trade, Agribusiness and Industry (MoTAI) and led by GIPA Chief Executive Officer, Simon Madjie.
The meeting brought together GIPA Deputy CEO Abdul Razak Baba, national executives of GUTA, representatives of the Internal Trade Unit of MoTAI and senior GIPA officials.
Mr. Madjie reaffirmed that activities in the informal retail sector, including open markets, small shops, kiosks and similar businesses, are legally reserved for Ghanaian citizens.
He stressed that Ghana remains open to foreign investment in the formal retail sector, including supermarkets and shopping malls, provided investors comply with the country’s laws.
“The informal retail space by law is reserved exclusively for citizens of Ghana, and that is non-negotiable,” he said.
The meeting also discussed the practice of “fronting”, where Ghanaian individuals or companies allegedly allow their names to be used to conceal foreign ownership or control of businesses operating in sectors reserved for citizens.
GUTA President Clement Boateng said the association was not opposed to foreign investment but insisted that all investors must comply with Ghanaian laws.
“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,” he said.
Participants further examined sanctions under the GIPA Act, 2026. Section 56(3) provides for an administrative penalty of between 5,000 and 10,000 penalty units for a non-citizen or non-wholly Ghanaian-owned enterprise that engages in a reserved activity, in addition to a monthly penalty of between 500 and 1,000 penalty units for continuing violations.
At the current statutory rate of GH¢12 per penalty unit, the initial penalty could range from GH¢60,000 to GH¢120,000, with additional monthly penalties of up to GH¢12,000.
The Act also makes it a criminal offence under Section 55(1)(a) for a person or enterprise to let or sublet a market stall or store to a foreigner for trading purposes. A person convicted summarily may face a fine ranging from 2,000 to 4,000 penalty units.
As part of measures to improve enforcement, GIPA and GUTA proposed reviving and strengthening an inter-agency task force involving GIPA, MoTAI, local government authorities, security agencies and other relevant regulatory bodies.
The two organisations also proposed establishing a dedicated monitoring and enforcement unit, supported by a direct reporting system through which traders can report suspected cases of foreign participation in reserved informal retail activities and fronting.
A joint public education campaign was also proposed to educate traders, foreign investors and the wider public on Ghana’s investment regulations, legal obligations and channels for reporting suspected breaches.
The meeting further considered diplomatic engagement with foreign missions in Ghana.
The initiative, to be led by the Minister for Trade in collaboration with the Ministry of Foreign Affairs, would seek to clarify Ghana’s legal position, explain its obligations under ECOWAS protocols and encourage partner countries to educate their nationals on compliance with Ghanaian laws.
GIPA and GUTA said they would continue working together to protect livelihoods in Ghana’s informal retail sector, enforce investment laws and promote a fair, orderly and lawful business environment.
