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Ghana Sets Up Committee Over Nigerian Businesses in the Country

February 5, 2020

The Ghanaian government has instructed the Ministry of Trade and Industry to work out modalities to address issues about foreigners, mostly Nigerians engaged in retail business in Ghana, an action that violates the Ghana Investment Promotion Council (GIPC’s) GIPC Act. To this end, the government has set up a technical committee to look into the matter and make recommendations on ways the address the issue. This was made known during an interaction session between representatives of the Ministry of Trade and Industry and Ghana National Union of Traders Association (GUTA) noting that the directive came from President Nana Addo Dankwa Akufo-Addo.

The Ghanaian parliament has equally asked its subsidiary committee on Trade and Industry to also make recommendations to that effect. This is especially in the light of the concerns being raised by members of GUTA over some foreigners engaged in retail trading. This is against the backdrop of complaints by members of GUTA that Section 27 of the GIPC Act 865 specifically states that “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 Ministry of Trade and Industry noted that the issue of foreigners taking over trading activities reserved for Ghanaians which has been your concern sometime has also come to the notice of government. The Minister’s aide Mr. Odonkor who made this known stated that “As directed by his Excellency, a technical sub-committee has been put together to ensure the implementation of the president’s directives on this matter”, he emphasized.

“Secondly, parliament has charged its subsidiary committee on Trade, Industry to study and make recommendations in a by-partisan manner with a view to finding a sustainable solution to this issue”, he added.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Ghana Set To Enforce Ban On Foreign Traders

December 15, 2019

With intense agitation coming from the Ghana Union of Traders Association, Ghana’s government seems to have no choice but to agree that foreign business owners or traders engaged in retail trading have no place in Ghana. President Nana Addo Dankwa Akufo-Addo, to that effect, has said his government is working hard to ensure strict enforcement of the country’s laws, and particularly to discourage foreigners from engaging in retail business in the country.

“[Member of] GUTA are right in their interpretation of the laws of our country. The laws of our country, until they are changed, have banned foreigners from engaging in retail trade in our country as well as activities in our markets reserved those for Ghanaians. So if people who are not Ghanaians are involved in it, people are entitled to get agitated about it,” the President said.

Here Is All You Need To Know

Ghana’s President who was speaking during a media chat with journalists at Jubilee House said the Ghanaian government sides with the Ghana Union of Traders Association’s (GUTA) interpretation of the country’s trade laws that only locals can work in the retail sector.
He, however, said agreed with people taking the law into their own hands to enforce the laws.

“What we need to do is to be more rigid in enforcing the law. Be more strict about the enforcement of the law and I’m hoping that the measures that have been put in place with the support of GUTA as they begin to work now, will make it possible and therefore bring down the decimal. The Nigerians cannot complain about our enforcement of our own laws. They do it in their country. There is nothing discriminatory about it,” he said.

“What I think [and] I’m hoping that we could put some kind of a handle on, is people taking the law into their own hands. That is why I made that intervention with GUTA and the leadership that they cannot take the law into their own hands by just closing down shops, there is no future in that,” Akufo-Addo added.

The Ghana Union of Traders Association (GUTA) and particularly Nigerian traders in the country have been in bad terms following series of actions taken by GUTA to stop the Nigerians from trading within the retail space, most of it involving forceful closure of their shops.
Nigerian traders have however insisted that the ECOWAS protocol which allows the free movement of people, goods and services in West African countries also allows them to trade in 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 their agitations are just actions by local retailers to preserve Ghana’s retail space and should not be seen as xenophobic attacks.

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

Over 600 Nigerian shops at Circle locked up again by GUTA

December 4, 2019

Over 600 shops belonging to foreign traders particularly Nigerians at the Kwame Nkrumah Circle have been locked up by members of the Ghana Union of Traders Association (GUTA).

Nima Divisional Police Commander, ACP Abraham Acquaye

This is not the first time GUTA members had embarked on such an exercise in their quest to rid the Ghanaian market of foreign traders who are engaging in retail.

According to GUTA, government has failed to enforce Section 27 (1) of the GIPC Act, which bars foreigners from doing retail business.

Some of the local traders tell Citi News they will enforce the law if government is not willing to adhere to their request.

“We are trying to enforce the GIPC law because we have seen that, the leaders of the country will not enforce it. So we have to enforce it ourselves. We have been in this thing for twenty years and they are killing our market.
Government upon government have failed to enforce the law, that is why we are where we are today. The only thing that can be done is to ensure that the foreigners do not enter into the retail business. If they don’t come, the case has ended. “

Another peeved Ghanaian trader noted:

“Nigeria has closed their border when we are all members of ECOWAS. It’s because they have their domestic laws. And their local laws come before the ECOWAS law. They don’t have a case there because you can never ascend to an international which goes against your local law.”

Mass closure regrettable- Nigerian traders

Some of the Nigerian traders mostly affected in the operation in their interaction with Citi News reiterated calls for Ghana government to intervene to resolve the impasse between Ghanaian and Nigerian traders.

“Unfortunately, we came this morning and realized that all the Nigerian shops have been locked by unknown persons. So some of our men who got there were so angry and broke the padlocks because we didn’t know the hoodlums who did that. This is a diplomatic issue and the worse part is that the people who are agitated and want us to leave are using a bad approach and are taking the law into their hands. The only solution is that, the government of Ghana must intervene on the matter. Government must look at this because it can be replicated in Nigeria. It’s not good for the nation.”

Police arrest some traders

Meanwhile, the Nima Divisional Police Commander, ACP Abraham Acquaye who was at the scene with his men to maintain order noted that some of the traders who pelted the police have been arrested.

“We went round to inspect the security threat and realized that, the Nigerians had also massed up to face their Ghanaian counterpart with the view to get their locked shops opened. We had even wanted to address the Nigeria Community over there, but before we could do that, people started pelting stones. So, we had to repel the attack by firing shots to control the crowd. We have been able to make a few arrests and they have been sent to the police headquarters for further investigations.”

Source: GhanaWeb

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

Ghana ’s Traders Union Gives Government One Week Ultimatum To Shut Out Foreign Retailers

November 19, 2019

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

Ghana ‘s Union of Traders Locks Up Over 100 Foreign Retailers’ Shops in Accra

November 5, 2019

Angry members of the Ghana Union of Traders Association (GUTA) have locked up about 52 shops belonging to foreigners at the Opera Square in Accra.

Storming the Central Business District on Monday, November 04, 2019, they called on the government to enforce the law that prevents foreigners from engaging in retail businesses in Ghana.

The traders interacting with Joy Business explained that “we are taking the law into their hands, especially when government has failed us.’’

They say the government’s inability to enforce the law leaves them with no choice than to do it themselves.

“We can’t sit and watch these Nigerian retailers take over our shops and business. There is a law which bans them from doing business yet our leaders sit back and watch them flouting the law,” one Ghanaian trader complained.

GUTA says foreign retailers flout section 27 of the Ghana Investment Promotion Centre (GIPC) Act 865.

That law specifies that 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 must be reserved for Ghanaians.

Other activities not permitted for non-citizens include:

-Operation of taxi or car hire service in an enterprise that has a fleet of less than twenty-five vehicles

-Operation of a beauty salon or a barbershop

-Printing of recharge scratch cards for the use of subscribers of telecommunication services

-Production of exercise books and other basic stationery

-Retail of finished pharmaceutical products

-Production and retail of sachet water.

At the Central Business District, the GUTA leadership had a special lock with which they were locking the shops, many of which belonged to Chinese and Nigerian nationals.

The exercise was being carried out by the Electrical Association Chapter of GUTA and hence they were targeting electrical shops.

Last week, Thursday, foreign traders in Kejetia, Suame Magazine, Adum, and Asafo markets were all yanked out of the shops.

GUTA Public Relations Officer, Albert Mensah Offei, said that the locking up of retail shops owned by foreigners will soon be extended to other parts of the country.

They specifically targeted shops with foreign names.

The closure of these shops follows the protracted closure of the Nigerian-Benin Border which has left trucks from Ghana stranded at the borders.

So far, Nigerian authorities have revealed an extension of the border until January 31 — a development the President of GUTA, Dr Joseph Obeng has described as proof of weak ECOWAS protocols.

Source: Ghana| Myjoyonline.com| Ama Cromwell|

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

Ghana ’s Traders Union Wants All Foreign Retail Shops Closed By Monday, November 4

November 2, 2019

Ghanaian traders seem to be prepared for the worst. Ghana Union Traders Association (GUTA)has demanded the total closure of all retail shops belonging to foreigners by Monday, November 4, 2019, with claims that the government has not fulfilled its promise of ridding the market of such traders despite several appeals. GUTA has also dared the foreign traders whose retail shops have been closed so far to sue them if they feel they are being treated unfairly.

“What we are saying is that if they, in the first place , have flouted the laws, what is the beef if you also flout the laws? They should take us to court if they think what we are doing is not right. What they are doing is offending the law. When you look on and allow someone to come into your country without the recourse of obeying the laws of the land, do you sit down for the person to go on and break your laws?” he asked.

Here Is All You Need To Know

The Ghana Union Traders Association (GUTA) has on several occasions complained about what they say is the collapse of their businesses due to the invasion of foreigners in the retail business.
According to them, the activities of the foreigners breach the Ghana Investment Promotion Centre’s Act (Act 865).
Citing the closure of the Nigerian border to protect its country from the smuggling of goods into their country, the Association said they will not tolerate the foreigners anymore, and demanded that their shops be closed down.
The latest has been that the Association has begun serving foreign traders with notices demanding them to evacuate their shops, and have already locked up a few shops.

When questioned on Eyewitness News as to whether their move to close down such shops was legal, the Ashanti Regional Secretary of the Association, Daniel Owoahene Acheampong responded that the foreigners can decide to sue them if they ‘think what we are doing is not right”.

A Look At The Controversial Section 27(1) of Ghana’s Investment Promotion 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