Ghana’s informal retail market is off limits to foreign investors regardless of the capital they bring, Simon Madjie, CEO of the Ghana Investment Promotion Authority (GIPA), confirmed on Thursday. Speaking on Joy News’ PM Express Business Edition, Madjie said the law clearly reserves informal retail exclusively for Ghanaians.
“The law reserves it for Ghanaians. So regardless of whatever amount of money you bring in, you are not expected to be there,” Madjie said. The challenge, he added, lies not in the legislation but in enforcing the restriction.
Madjie pointed to confusion between trade and investment as a source of misunderstanding among the public. “There’s a whole world of confusion between trade and investment,” he said. He explained that trade involves the exchange of goods and services, while investment means committing resources, establishing an entity, and creating value with the prospect of earning and repatriating profits.
In the context of informal retail, the restriction remains firm. Madjie said enforcement agencies, especially those controlling markets, need coordination. “It’s just a question of enforcement, and how do we get all the agencies together, especially those who control the markets?” he asked.
The government’s effort to build model markets under former President John Mahama was cited by Madjie as a way to tackle enforcement challenges. Organised and regulated markets would allow authorities better control over trading spaces, including facilities like fire services.
Madjie rejected calls to relax rules to accommodate foreign investors. “Look, the state of Ghana is not bending the rules for investors to come in,” he said. Both domestic and foreign investors must comply with Ghana’s regulations. Some international investors listed on foreign stock exchanges face pressure to maintain good conduct in Ghana, as missteps could affect their shares.
He acknowledged that local businesses sometimes make mistakes, particularly regarding VAT and tax collection, but said these issues are addressed through aftercare systems.
“Ghana is not bending the rules for investors. Ghana has just levelled the playing field to bring in more people to partner with our businesses,” Madjie added.
The informal retail sector remains a sensitive area for investment policy. Madjie’s comments underline the government’s stance that foreign capital, no matter how large, does not grant access to this market segment. The focus now rests on improving coordination among enforcement agencies and expanding regulated trading environments to uphold this policy.
According to Joy Online.
