President John Dramani Mahama has reaffirmed that Ghana’s retail sector is legally reserved for citizens, stressing that foreign nationals are not permitted to operate in that space.

Speaking during a media engagement on Wednesday, September 10, 2025, the President pointed to the provisions of the Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865), which restricts participation in retail trade to Ghanaians only.

“The current law restricts the retail sector to only Ghanaians. Some argue it is anti-competitive, but in most countries, certain parts of the economy are protected for the benefit of the people,” he said

The President, however, announced that Parliament will review the law, urging citizens to abide by whatever outcome is attained.

His comments follow renewed pressure from the Abossey Okai Spare Parts Dealers Association, which has been calling for the closure of shops owned by foreign traders in the local retail market. The Association insists that the activities of non-Ghanaian retailers amount to unfair competition, threatening the survival of local businesses.

Section 27(1) of Act 865 prohibits foreigners from engaging in retail activities such as hawking or selling goods in market stalls, yet traders have repeatedly accused authorities of failing to enforce the law effectively.

Meanwhile, Simon Madjie, Chief Executive Officer of the GIPC, has reiterated the government's dual commitment to both attracting foreign investment and safeguarding sectors reserved for locals. He revealed that a new GIPC bill under review seeks to introduce administrative fines for offenders and establish a national register of investors and businesses to enhance compliance.

Last year the Ghana Union of Traders’ Association (GUTA) has urged authorities to take decisive action against foreigners operating in the country's retail market.

GUTA argues that this sector, traditionally reserved for Ghanaians, is now dominated by foreign traders, particularly Chinese, who flood the market with inexpensive products.

At the Customs, Controls, and Regulations Forum organized by the Ghana Investment Promotion Centre (GIPC), GUTA President Joseph Obeng highlighted the issue.

He pointed out that foreign traders, notably those associated with China Mall and China Town, control around 40% of the market, undermining local manufacturers' efforts.

“We have China Mall and China Town, which have taken over 40% of the market, and are derailing the efforts of local manufacturers.”

“All they do is to have their subsidized goods being dumped here (in Ghana) and we do not have the courage to clamp on them,” he opined.

These foreign entities, according to Obeng, import subsidized goods that are then dumped in Ghana, harming local businesses.

Obeng expressed concern that Ghanaian traders' market share has dwindled to just 20%, with the majority of goods being imported by foreign traders.

“The local traders’ component is only 20%. The bulk of the goods is brought in by foreign traders.”

He also noted that foreign traders often repatriate their earnings, exacerbating the depreciation of the cedi, as they do not bring in the necessary foreign exchange for trading but instead turn to the black market.

“They don’t bring the correspondent forex for trading, they only go to the black market and change the forex and destroy our economy.”

Despite existing laws that mandate certain retail businesses to be operated by Ghanaians, enforcement has been lacking, allowing foreign traders to increasingly encroach on this space.

The forum organized by the GIPC serves as a platform to address issues affecting businesses and investors, aiming to prioritize concerns and inform policy reforms.

On Monday, November 20, 2023, chaos unfolded in Koforidua, the Eastern Regional Capital, as clashes erupted between members of the Ghana Union of Traders Association (GUTA) and predominantly Nigerian foreign retailers.

The incident unfolded as GUTA escalated efforts to shutter shops and businesses operated by foreigners engaged in retail activities.

Heated confrontations and physical altercations ensued on the streets as mobile phone accessories and bags were seized.

In an unexpected turn of events, dozens of Nigerians mobilized and stormed the New Juaben South Municipal Assembly, where GUTA members had gathered for debriefing after their operations.

Demanding the release of their confiscated items and seeking justice for what they perceived as mistreatment of their compatriots, the Nigerians created a tense atmosphere at the assembly.

The intervention of Michael Okyere Baafi, Member of Parliament for New Juaben South and Deputy Minister for Trades and Industry, was necessary to restore order and pacify tempers.

GUTA's actions are rooted in concerns over competition and the potential impact of foreign retailers on the local market. Samuel Victor Aikens, Eastern Regional Vice Chairman of GUTA, emphasized the association's commitment to enforcing the Ghana Investment Promotion Centre (GIPC) Law, which prohibits foreigners from engaging in retail trade.

“Every country has its laws and regulations. GIPC ACT 865 forbids foreigners from entering into retail trade so that is why we are stopping them from operating in retail. We are asking them not to retail. They can bring the goods, and give them to Ghanaians to sell at retail price. So that is why we are trying to prevent them from doing retail. We are not stopping. There are foreigners retailing rice, oil, and motors we are going to stop them,” Samuel Aikens stated.

Not all Ghanaians, nevertheless, agree with GUTA's policies. Bystanders claim that because Nigerians have competitively priced mobile phones, Ghanaian dealers are no longer able to cheat.

The Member of Parliament for New Juaben South, Okyere Baafi, stressed the need of upholding national laws in spite of efforts made on a continental and regional level to encourage free trade. He emphasized that the GIPC Act forbids foreign nationals from working in the retail industry, and the Ministry is in favor of closing overseas retail locations while promoting a nonviolent strategy.

“Because of what we call ECOWAS UTLS, citizens of countries in the ECOWAS region can enter every market to do business which is duty-free, quota-free, however, you have to get documents to prove that you can do legitimate business. So if you don’t have those documents to prove then you will not be allowed to do business and exactly what is happening.”

This clash follows the closure of 38 shops belonging to foreign retailers by GUTA's Eastern Regional branch two weeks ago. The association remains steadfast in its commitment to intensify these efforts during the Yuletide season and beyond.

The confrontations between GUTA and foreign retailers contribute to diplomatic strains between Ghana and Nigeria, where Nigerian citizens have flooded the local market engaging in retail activities.

In an attempt to address this issue, a joint communique was signed in 2021 between Ghana and Nigeria during the Extraordinary ECOWAS Summit. The agreement proposed a reconsideration of the 1-million-dollar minimum requirement for foreigners in trading enterprises under section 28(2) of the Act.

This move aimed to resolve a 25-year retail dispute between Ghana and Nigeria and was officially presented by Ghana's Speaker of Parliament, Alban Bagbin, to Nigeria's House of Representatives following the summit. Speaker Bagbin expressed that this intervention marked the conclusion of the retail impasse between the two nations.

The adjustment sought to facilitate the regularization of businesses run by affected Nigerian retail traders previously excluded from the market. Additionally, a special concession was introduced, reducing the stamp duty requirement to 0.5%, with the assurance that it would not apply to Nigerian traders.