Ghanaian authorities agree measures to protect local informal retail sector

The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have established a collaborative roadmap to protect Ghana’s informal retail sector. This sector, which includes open markets, small shops, and kiosks, is reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).

Following a meeting convened by the Ministry of Trade, Agribusiness and Industry (MoTAI), the parties agreed on measures to curb unauthorized foreign participation. These measures include enhanced monitoring, enforcement, public education on investment regulations, and a direct reporting mechanism for suspected legal breaches.

A primary concern addressed was “fronting,” a practice where Ghanaian individuals or businesses are allegedly used to conceal foreign ownership or control of enterprises in sectors reserved for citizens. GIPA CEO Simon Madjie emphasized that while Ghana remains open to foreign investment in the formal retail sector, such as malls and supermarkets, investors must strictly adhere to national laws.