Model markets key to tackling foreign encroachment in informal retail – GIPA CEO

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie says government’s model markets offer the ultimate solution to foreign participation in Ghana’s informal retail sector.

Speaking on Joy News’ PM Express Business Edition on Thursday, he said the markets would help authorities regulate trading spaces and enforce restrictions on non-Ghanaians.

Informal retail, he stressed, is reserved for Ghanaians. A foreign trader’s financial resources do not change that restriction.

“The law reserves it for Ghanaians. So regardless of whatever amount of money you bring in, you are not expected to be there.”

For Mr Madjie, the challenge is enforcement. He called for coordination among the relevant agencies, particularly those responsible for managing markets.

“It's just a question of enforcement, and how do we get all the agencies together, especially those who control the markets?”

He said the model markets being built under President John Mahama would give authorities greater control over these spaces. Their value, he explained, goes beyond providing structures where people can sell.

“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.”

Mr Madjie also linked confusion over foreign participation to a failure to distinguish trade from investment.

Trading, he explained, involves exchanging goods and services. Investment involves committing resources, establishing an entity and creating value, with the investor taking a risk.

“So these are completely two different things. We tend to confuse the two.”

He rejected suggestions that Ghana relaxes its rules to attract foreign investors.

“Ghana is not bending the rules for investors.”

He said domestic and foreign investors must comply with the country’s rules. Internationally listed companies, he added, face accountability systems that can make breaches in Ghana consequential for their shares abroad.

For businesses facing VAT or tax collection challenges, he said GIPA seeks solutions through its aftercare system.

“Ghana has just levelled the playing field to bring in more people to partner with our businesses”.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.