Chinese malls taking 60% of Ghana’s retail market – GUTA laments
The Ghana Union of Traders’ Associations (GUTA) has raised concerns over the rapid expansion of Chinese-owned shopping malls in the country, claiming that they are taking an estimated 60 per cent share of the market and putting pressure on local businesses.
The association says the growing presence of the malls, including those operating within established trading centres, is having a negative impact on Ghanaian traders and has urged the authorities to investigate the trend.
The President of GUTA, Clement Boateng, said although the general business environment had shown signs of improvement, the expansion of the Chinese malls remained a major concern for local operators.
Speaking on Joy News’ PM Express on Thursday, November 5, he said key macroeconomic indicators were pointing in a positive direction, a development he believed should support trading activities.
However, he said the increasing number of Chinese shopping malls was creating a difficult environment for domestic businesses.
“If you all look at the microeconomic indices, one will say that they are all pointing to a very positive direction and definitely supposed to have a bearing on whatever activities that, as traders, we perform,” he said.
Mr Boateng said the expansion of the malls was particularly worrying because of the market share they were allegedly commanding.
“These Chinese shopping malls are springing up, and these shopping malls are taking about 60 per cent of our market share, and we think it is having a very negative impact as far as local businesses are concerned,” he said.
He called on the relevant authorities to examine their operations and assess the implications for Ghanaian-owned businesses.
Mr Boateng also raised concerns about the movement of profits generated by the malls outside the country, arguing that stronger local businesses would allow more of the earnings from commercial activities to remain in Ghana.
“These Chinese malls will repatriate their profits away. But if businesses, local businesses are doing well, definitely all the monies will remain here,” he said.
His comments add to GUTA’s concerns about the competitive pressures facing local traders as foreign-owned retail outlets expand their presence in the Ghanaian market.
The association is calling for attention from the authorities, although Mr Boateng did not outline specific regulatory measures he wants the government to introduce.
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