Foreign capital no passport to Ghana’s informal retail market – GIPA CEO

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie says no amount of foreign capital gives an investor the right to enter Ghana’s informal retail market.

Speaking on Joy News’ PM Express Business Edition on Thursday, he said the sector is reserved for Ghanaians. The challenge, he stressed, is enforcing 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.”

Mr Madjie said that confusion between trade and investment has blurred the public's understanding of the rules.

“There's a whole world of confusion between trade and investment.”

He explained that trade involves exchanging goods and services. Investment involves committing resources, establishing an entity and creating value, with the prospect of earning and repatriating profits.

For informal retail, however, he said the restriction remains clear. The task is to bring enforcement agencies together, particularly those responsible for controlling markets.

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

Mr Madjie pointed to model markets being built by the government under President John Mahama as a way to address the problem.

He said organised, regulated markets would give authorities greater control over trading spaces. He also highlighted facilities such as fire services as part of that approach.

“And so I see that as the solution to these major issues that we've had for a very long time.”

He rejected suggestions that Ghana relaxes its rules to accommodate investors.

“Look, the state of Ghana is not bending the rules for investors to come in.”

Mr Madjie said domestic and foreign investors are expected to comply with the country’s regulations.

He noted that some international investors are listed on foreign stock exchanges. Their conduct in Ghana could affect their shares, making compliance critical.

He also acknowledged that growing local businesses can make mistakes. Problems involving VAT and tax collection, he said, are addressed through the aftercare system.

“Ghana is not bending the rules for investors. Ghana has just levelled the playing field to bring in more people to partner with our businesses,” he said.

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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.