The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) are moving to intensify enforcement of laws restricting foreign participation in Ghana’s informal retail sector, following concerns over alleged fronting arrangements involving Ghanaian traders.
The two institutions have agreed to strengthen monitoring, establish reporting channels and embark on public education to identify and address suspected violations of investment laws.
The decision followed a meeting convened under the direction of the Ministry of Trade, Agribusiness and Industry (MoTAI), led by GIPA Chief Executive Officer Simon Madjie and supported by Deputy CEO Abdul Razak Baba.
The meeting brought together GUTA’s national executives, representatives of MoTAI’s Internal Trade Unit and senior GIPA officials.
At the centre of the discussions was the alleged practice of Ghanaians allowing foreign nationals to operate businesses in their names in order to circumvent restrictions on foreign participation in reserved retail activities.
GIPA said the practice undermines the protection provided to Ghanaian-owned informal businesses and compromises the enforcement of the country’s investment laws.
Mr Madjie reiterated that activities such as trading in open markets, small shops and kiosks are reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).
“The informal retail space by law is reserved exclusively for citizens of Ghana, and that is non-negotiable,” he said.
He, however, clarified that Ghana remains open to foreign investment in the formal retail sector, including malls and supermarkets, provided investors comply with the applicable legal requirements.
GIPA has consequently pledged to work with GUTA and other relevant institutions to identify and address cases where Ghanaian individuals allegedly act as fronts for foreign-owned businesses.
GUTA CEO Clement Boateng said the association supports legitimate foreign investment but insisted that investors must operate within the law.
“We are not against foreigners. If you satisfy the law, we have no issue with you,” he said.
He added that businesses operating outside the legal framework should be stopped to ensure Ghanaian traders can participate freely in the informal retail market.
Tougher penalties for violations
The renewed enforcement drive comes with significant financial penalties under the GIPA Act, 2026.
A non-citizen or non-wholly Ghanaian-owned enterprise engaging in an activity reserved for citizens may face an administrative penalty ranging from 5,000 to 10,000 penalty units.
At the current statutory rate of GH¢12 per penalty unit, that translates into an initial penalty of between GH¢60,000 and GH¢120,000.
Continuing violations may attract an additional monthly penalty of between 500 and 1,000 penalty units, equivalent to up to GH¢12,000 per month.
The law also criminalises the letting or subletting of a market stall or store to a foreigner for trading purposes.
A person found guilty on summary conviction could face a fine of between 2,000 and 4,000 penalty units.
Task force to be strengthened
As part of the new measures, GIPA and GUTA have agreed to revive and strengthen an inter-agency task force involving MoTAI, local government authorities, security agencies and other regulatory institutions.
A dedicated monitoring and enforcement unit will also be established to support investigations and enforcement.
The institutions plan to introduce a direct reporting mechanism through which traders can report suspected cases of foreign-owned informal retail businesses and fronting arrangements.
They will also embark on a joint public education campaign to explain the regulations governing informal retail, the obligations of foreign investors and the channels available for reporting suspected breaches.
Diplomatic engagement planned
The discussions also considered the diplomatic dimension of enforcing Ghana’s investment laws.
The Minister for Trade is expected to work with the Ministry of Foreign Affairs to engage diplomatic missions in Ghana on the restrictions governing informal retail activities.
According to GIPA, the engagement will help clarify Ghana’s legal position, explain the country’s obligations under the ECOWAS framework and encourage foreign missions to educate their nationals about Ghanaian investment laws.
The initiative signals a stronger push by the authorities to protect Ghanaian participation in the informal retail sector while maintaining the country’s openness to foreign investment that complies with established laws.
