The union of traders in Ghana seems to be getting impatient. Out from its last warning, the group is back again, this time, insisting that they are at their wit’s end and will no longer sit unconcerned for their jobs to be taken away from them. To that effect, the Ghana Union Traders Association (GUTA) has given government one week to enforce laws barring foreigners from engaging in retail trade in the country.
“We hereby issue an ultimatum of one week to the government to ensure that all state institutions responsible for the enforcement of our laws on retail trade by foreigners in the country, are implemented to the letter as it is done in all sovereign states to bring peace and its attendant security,” Vice President of GUTA, Patrick Osei Brogya, said.
Here Is All You Need To Know
- At a press conference, the leadership of the Association threatened to take further action if nothing is done about the situation within the given time frame.
- Joy Business reports that last week, angry members of the Association locked up about 52 shops belonging to foreigners at the Opera Square in Accra.
- Storming the Central Business District, they again — like they have been doing in the past months — called on the government to enforce the law that prevents foreigners from engaging in retail businesses in Ghana.
“Each time we embarked on an action to enforce the law, state authorities plead with us to stop so that they would carry it out, but they eventually go back to sleep on the job.
“We are now at our wits end and can no longer endure suffering as slaved in our own country while foreigners flout our law with impunity,” Mr Brogya noted.
GUTA says if it does not see any action by the authorities to decisively deal with the situation, they will advise themselves on the next line of action which will be staged nationwide.
“Enough is enough. This is our message and we believe that it will not fall on deaf ears if indeed, we have listening authorities who think of the well-being of the citizens of Ghana.”
A Look At The Controversial Section 27(1) of Ghana’s Investment Promotion Center Act
According to Section 27 (1) of the GIPC Act, a person who is not a citizen or an enterprise which is not wholly-owned by a citizen shall not invest or participate in the sale of goods or provision of services in a market, petty trading or hawking or selling of goods in a stall at any place. The list of prohibited trading activities are:
- The sale of goods or provision of services in a market, petty trading or hawking or selling of goods in a stall at any place;
- The operation of taxi or car hire service in an enterprise that has a fleet of less than twenty-five vehicles;
- The operation of a beauty salon or a barbershop;
- The printing of recharge scratch cards for the use of subscribers of telecommunication services;
- The production of exercise books and other basic stationery; f. the retail of finished pharmaceutical products;
- The production, supply, and retail of sachet water;
- All aspects of pool betting business and lotteries, except football pool
Consequently, enterprises eligible for foreign participation and minimum foreign capital requirement are as follows:
A person who is not a citizen may participate in an enterprise other than an enterprise specified in section 27 if that person
- In the case of a joint enterprise with a partner who is a citizen, invests a foreign capital of not less than two hundred thousand United States dollars in cash or capital goods relevant to the investment or a combination of both by way of equity participation and
- The partner who is a citizen does not have less than ten percent equity participation in the joint enterprise; or
- Where the enterprise is wholly owned by that person, invests a foreign capital of not less than five hundred thousand United States dollars in cash or capital goods relevant to the investment or a combination of both by way of equity capital in the enterprise.
- A person who is not a citizen may engage in a trading enterprise if that person invests in the enterprise, not less than one million United States dollars in cash or goods and services relevant to the investments.
- For the purpose of this section, “trading” includes the purchasing and selling of imported goods and services.
- An enterprise referred to shall employ at least twenty skilled Ghanaians
Chase Away Foreigners?
GUTA President, in July 2019, said these confrontations are just actions by local retailers to preserve Ghana’s retail space and should not be seen as xenophobic attacks.
“We are going to declare the destiny day demonstration in three months, where all other laws will not be regarded if our pleas are not being noticed,” he said to the delight of the traders.
Same July, Ghana Union Traders Association President was quoted as insisting that if the Ghanaian government does not do as expected and the time comes for the demonstration, its members will not be stopped.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world