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

Ghana Investment Promotion Authority CEO Simon Madjie has clarified that foreign capital does not automatically grant investors access to Ghana's informal retail market. Speaking on Joy News' PM Express Business Edition, Mr Madjie emphasized that the sector is reserved for Ghanaians, regardless of the amount of money invested. The confusion between trade and investment has led to public misunderstanding of the rules.

Trade involves exchanging goods and services, while investment entails committing resources, establishing an entity, and creating value, with the potential for earning and repatriating profits. The restriction on informal retail remains clear, and the challenge lies in enforcing this regulation through collaboration between enforcement agencies, particularly those controlling markets.

Mr Madjie highlighted the government's initiative to build model markets under President John Mahama as a potential solution to address the issue, aiming to give authorities greater control over trading spaces and incorporate facilities such as fire services. He rejected the notion of relaxing rules to attract investors, stating that Ghana maintains its regulations and notes that international investors' compliance with local laws is crucial, as their conduct in Ghana can impact their shares.

He also acknowledged that local businesses may occasionally make mistakes, with instances such as VAT and tax collection issues being handled through an aftercare system. According to Mr Madjie, Ghana is not bending its rules to accommodate investors and is instead leveling the playing field to encourage more partnerships.