The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPA), Simon Madjie, has emphasized that Ghana's informal retail trade sector remains legally reserved for Ghanaian citizens, regardless of the amount of foreign capital offered. Speaking on Joy News' PM Express Business Edition on October 8, 2026, Madjie clarified that the law is unambiguous and applies without exception. He stressed that the restriction is in place to protect the livelihoods of Ghanaian traders.
Madjie highlighted the confusion between trade and investment as a major issue. He explained that trade involves the simple exchange of goods and services, while investment requires committing resources, setting up a formal entity, and creating value with the intention of earning and repatriating profits. According to Madjie, the law is clear: informal retail trade is reserved for Ghanaian citizens only. This distinction is crucial in understanding the country's regulations.
The real challenge, according to Madjie, lies not in the clarity of the law but in its enforcement. He emphasized that tackling the problem requires collaboration among state agencies, particularly those responsible for overseeing markets, to work together rather than operate in silos. This coordinated effort is necessary to effectively address the issue of foreign nationals operating in breach of the law.
Madjie pointed to the model markets being constructed under President John Mahama's government as a potential solution. He argued that organized, regulated trading spaces, equipped with facilities such as fire services, would give authorities greater control over who operates in them. This, he believes, is the answer to a longstanding challenge in the country's informal retail sector.
Madjie pushed back on suggestions that Ghana should loosen its investment rules to court foreign capital. He stated that the state has not bent its regulations for investors but has instead widened opportunities for foreign businesses to partner with Ghanaian ones. Both domestic and foreign investors are required to comply fully with the country's regulations.
The Ghana Investment Promotion Centre Act, 2013 (Act 865), lists retail trading among business activities reserved exclusively for Ghanaian citizens. The restriction on retail trade has long been a point of contention between the Ghana Union of Traders Association (GUTA), immigration authorities, and foreign nationals accused of operating shops and stalls in local markets in breach of the law.
Madjie's comments suggest that despite the clear legal position, enforcement gaps have allowed the practice to persist, fueling recurring tension in markets across the country. The issue is directly tied to livelihoods, as informal retail is a major source of income for many Ghanaian citizens. GUTA has repeatedly complained that foreign traders undercut local businesses in spaces set aside for Ghanaians alone.
Key points
- GIPA CEO Simon Madjie emphasizes that Ghana's informal retail sector is off-limits to foreigners, regardless of investment.
