Model markets key to tackling foreign encroachment in informal retail – GIPA CEO

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie believes that model markets are the key to addressing foreign encroachment in Ghana's informal retail sector. Speaking on Joy News' PM Express Business Edition, Madjie emphasized that the government's model markets would provide the ultimate solution to regulate trading spaces and enforce restrictions on non-Ghanaians.

He stressed that informal retail is reserved for Ghanaians, regardless of the financial resources a foreign trader brings. The challenge, Madjie noted, lies in enforcement, calling for coordination among relevant agencies responsible for managing markets. The model markets being constructed under President John Mahama would grant authorities greater control over these spaces, bringing a higher level of regulation.

Beyond providing structures for selling, Madjie highlighted that these markets are well-regulated, encompassing fire services and more. He also clarified that confusion between trade and investment is a contributing factor to the issue, explaining that trade involves exchanging goods and services, while investment entails committing resources, establishing an entity, and creating value with associated risks.

Madjie rejected calls for relaxing rules to attract foreign investors, stating that Ghana will not bend its rules for investors. Domestic and foreign investors alike must comply with the country's regulations. For businesses grappling with VAT or tax collection issues, GIPA aims to provide solutions through its aftercare system, aiming to level the playing field for more partnerships.