Ghana Investment Promotion Authority (GIPA) Chief Executive Officer Simon Madjie says government’s model markets could provide a lasting solution to the regulation of Ghana’s informal retail sector and enforcement of restrictions on foreign participation.
Speaking on Joy News’ PM Express Business Edition on Thursday, Mr Madjie stressed that informal retail is legally reserved for Ghanaians, regardless of the financial resources a foreign trader may possess.
“The law reserves it for Ghanaians. So regardless of whatever amount of money you bring in, you are not expected to be there,” he said.
He identified weak enforcement and limited coordination among the relevant agencies, particularly those responsible for market management, as key challenges.
“It’s just a question of enforcement, and how do we get all the agencies together, especially those who control the markets?” he asked.
Mr Madjie said the model markets being developed under President John Dramani Mahama’s administration could help address these concerns by providing a more structured and regulated trading environment.
He explained that the markets would offer more than physical spaces for traders, incorporating facilities and systems to improve management, safety and regulatory oversight.
“It’s well regulated. You have your fire service. You have everything there, and so I see that as the solution to these major issues that we’ve had for a very long time,” he said.
Trade and investment are different
Mr Madjie also called for a clearer distinction between trade and investment, arguing that confusion between the two contributes to misunderstandings about the role foreign businesses can play in Ghana’s economy.
He explained that trading involves the exchange of goods and services, while investment entails committing resources, establishing an enterprise and creating value while assuming commercial risks.
“So these are completely two different things. We tend to confuse the two,” he said.
He rejected suggestions that Ghana should relax its regulatory requirements to attract foreign investors, insisting that all businesses must operate within the country’s legal framework.
“Ghana is not bending the rules for investors,” he stated.
According to him, internationally listed companies also face accountability requirements that could have implications for their shares abroad if they breach regulations in Ghana.
GIPA offers support to businesses
On challenges businesses face with value-added tax (VAT) and tax collection, Mr Madjie said GIPA uses its aftercare system to engage relevant stakeholders and seek solutions.
He maintained that Ghana’s approach is to create a level playing field that encourages partnerships between foreign investors and local businesses without compromising the country’s laws.
“Ghana has just levelled the playing field to bring in more people to partner with our businesses,” he said.
