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

Ghana Investment Promotion Authority CEO Simon Madjie has stated that foreign capital does not grant investors the right to enter Ghana's informal retail market. Speaking on Joy News' PM Express Business Edition, Madjie emphasized that the sector is reserved for Ghanaians. The challenge lies in enforcing this restriction. Madjie pointed out the confusion between trade and investment, explaining that trade involves the exchange of goods and services, while investment entails committing resources, establishing an entity, and creating value with the potential to earn and repatriate profits.

The restriction on informal retail remains clear, and the key issue is enforcement. Madjie suggested that improving coordination among enforcement agencies, particularly those responsible for controlling markets, could help address the problem. The government is building model markets under President John Mahama, aiming to give authorities greater control over trading spaces.

Madjie also highlighted the importance of facilities such as fire services in this approach. He rejected calls for Ghana to relax its rules to accommodate investors, stating that the state of Ghana will not bend the rules for foreign investors. Domestic and foreign investors are expected to comply with the country's regulations, as non-compliance could affect their shares.

Madjie acknowledged that local businesses may make mistakes, but problems involving VAT and tax collection are addressed through the aftercare system. He affirmed that Ghana is not bending the rules for investors and has levied the playing field to bring more people to partner with local businesses.