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

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie has emphasized that the government's model markets provide the best solution to the issue of foreign participation in Ghana's informal retail sector. Speaking on Joy News' PM Express Business Edition, he conveyed that these markets would assist authorities in regulating trading spaces and enforcing restrictions on non-Ghanaians.

He reiterated that informal retail is exclusively reserved for Ghanaians, regardless of a foreign trader's financial resources. Madjie highlighted that the primary challenge lies in enforcement, calling for closer coordination among relevant agencies overseeing market management. The construction of model markets under President John Mahama, he pointed out, would grant authorities greater control over these spaces.

Madjie stressed that these markets offer more than just physical structures for selling, as they are well-regulated with essential facilities such as fire services. He clarified that the confusion over foreign participation stems from a failure to distinguish between trade and investment. Trading, he explained, involves exchanging goods and services, while investment entails committing resources, establishing an entity, and creating value, with the investor assuming risk.

Madjie dismissed the notion of relaxing rules to attract foreign investors, stating that Ghana does not bend its rules for investors. He emphasized that domestic and foreign investors alike must comply with Ghana's regulations. International companies listed on stock exchanges face accountability systems that can lead to consequences for their shares abroad if they breach Ghana's laws.

Madjie noted that businesses grappling with VAT or tax collection issues can seek solutions through GIPA's aftercare system. He concluded by highlighting that Ghana has leveled the playing field to attract more partners to collaborate with local businesses.