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

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie has stated that foreign capital alone does not entitle investors to enter Ghana’s informal retail market. The sector is reserved for Ghanaians, according to the law. Madjie emphasized that despite the influx of money, this does not grant any special privileges. The confusion between trade and investment has muddled public understanding of the rules.

Trade refers to exchanging goods and services, while investment involves committing resources to establish an entity and create value, with the potential for profit and repatriation. The issue primarily lies in enforcement, particularly among agencies responsible for regulating markets. Madjie highlighted the government's initiative to build model markets under President John Mahama as a potential solution, as regulated markets would provide authorities with greater control.

Additionally, facilities like fire services are part of this approach. He firmly rejected calls for relaxing the rules to accommodate investors. Ghanian authorities expect both domestic and foreign investors to adhere to local regulations, as compliance is crucial, especially considering that international investors listed on foreign stock exchanges could see their shares affected by their conduct in Ghana.

Madjie acknowledged that local businesses may sometimes make mistakes, such as with VAT and tax collection, which are handled by the aftercare system. He reiterated that Ghana is not bending the rules for investors, but rather leveling the playing field to encourage more partnerships between local businesses.