The Ghana Investment Promotion Centre (GIPC) has issued a strong warning to Ghanaians engaged in “fronting” arrangements for foreign investors, describing the practice as illegal and a major obstacle to the enforcement of the country’s investment laws.
Speaking after a training workshop for journalists in Kumasi, the Ashanti Regional Deputy Director and Head of the GIPC Zonal Office, Mr Michael Otchere, expressed concern over the growing number of businesses that are officially registered in the names of Ghanaians but are allegedly owned and controlled by foreign nationals. He noted that such practices are particularly prevalent in sectors reserved exclusively for Ghanaian citizens under the Ghana Investment Promotion Centre Act, 2013 (Act 865).
Mr Otchere explained that fronting undermines fair competition and weakens regulatory oversight, making it difficult for authorities to enforce investment regulations effectively. He called on the media to support efforts to expose violations and educate the public on the legal implications of the practice.
He cautioned that individuals found engaging in fronting arrangements could face prosecution, urging Ghanaians to desist from serving as proxies for foreign-owned businesses operating in restricted sectors. According to him, tackling non-compliance remains a key priority for the Centre, especially in the Ashanti Region where such cases are reportedly on the rise.
