Ghana’s informal retail sector will see tighter restrictions on foreign traders through the government’s model markets, Simon Madjie, CEO of the Ghana Investment Promotion Authority (GIPA), said on Thursday.
Speaking on Joy News’ PM Express Business Edition, Madjie confirmed that informal retail remains reserved 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,” he said.
Foreign traders have long operated in Ghana’s informal markets, often blurring lines between trading and investment. Madjie distinguished the two sharply. Trading involves the exchange of goods and services. Investment means committing resources, establishing an entity, creating value, and taking risks. “So these are completely two different things. We tend to confuse the two,” he said.
Enforcement remains the primary challenge, Madjie added. He called for better coordination among agencies that manage markets. “It’s just a question of enforcement, and how do we get all the agencies together, especially those who control the markets?”
Model markets, an initiative launched under former President John Mahama, aim to provide authorities with greater control over trading spaces. They offer regulated environments with infrastructure including fire services. “It’s well regulated. You have your fire service. You have everything there, and so I see that as the solution to these major issues that we’ve had for a very long time,” Madjie said.
These markets are designed not only to improve facilities but to enforce restrictions on foreign participation at the informal retail level. The government’s focus is on ensuring that Ghanaian traders dominate informal retail, while foreign investors operate within the formal economy, subject to existing rules.
Madjie also responded to calls for Ghana to relax its rules to attract foreign investors. “Ghana is not bending the rules for investors,” he said. Both domestic and foreign investors must comply with Ghanaian laws. He pointed out that many international companies listed on global markets face accountability mechanisms that make breaches in Ghana consequential for their shares abroad.
Addressing concerns about challenges related to VAT and tax collection, Madjie said GIPA employs an aftercare system to work with businesses. “Ghana has just levelled the playing field to bring in more people to partner with our businesses,” he explained.
The government’s approach distinguishes foreign direct investment from informal trading, focusing on regulation rather than liberalisation of the informal sector. Madjie’s comments underline the state’s intent to regulate trading spaces more strictly and curb non-Ghanaian participation in informal retail.
The model markets’ rollout remains a critical element in this strategy. Their development aims to provide the physical and administrative tools necessary to enforce existing restrictions effectively.
The emphasis on enforcement and agency coordination suggests that policy implementation will be as important as legislative frameworks in reshaping Ghana’s informal retail landscape.
According to Joy Online.
