While the African Continental Free Trade Area (AfCFTA) seeks to promote seamless trade across the continent, Louis Yaw Afful, an international trade expert and AfCFTA & Investment Promotion consultant, says national laws protecting indigenous sectors in Ghana remain paramount.
Afful made the comments in an interview with The High Street Journal, which was largely prompted by growing concerns over foreign participation in the retail and small-scale service sectors, which are traditionally reserved for indigenous Ghanaians.
Many foreign nationals, especially Nigerians, are reported to operate through local “fronts,” registering businesses in Ghanaian names while controlling operations, effectively bypassing legal restrictions. In the midst of these tensions, some of the issues raised included that the happenings risk derailing the purpose of AfCFTA.
But Afful highlighted that AfCFTA facilitates intra-African commerce but does not override domestic regulations. “The AfCFTA framework encourages trade between countries, but it does not compel Ghana to liberalize sectors reserved for native traders,” he explained.
He emphasized that proper enforcement of existing laws is critical to ensure that foreign nationals do not encroach on sectors legally reserved for Ghanaians. Weak enforcement, gaps in coordination among agencies, and the use of local “fronts” by foreign traders have allowed some to bypass restrictions, threatening native livelihoods.
Afful explained that the problem stems from a thin line between trade and investment laws, which has created confusion over which sectors fall under the Ghana Investment Promotion Centre (GIPC) and which fall under the Ministry of Trade. Retail and small-scale service sectors, meant to be reserved for indigenous traders, are particularly affected.
He also noted that the upcoming GIPC amendment bill, which seeks to clarify what constitutes investment, define reserved sectors, and introduce sanctions for violations, is expected to provide the legal framework necessary to correct these imbalances. “Once the amendment is passed into law, it will provide the legal teeth needed to enforce the rules and prevent foreign traders from operating through Ghanaian fronts,” he said.
Afful stressed the importance of collaboration between regulators, trade associations, and other stakeholders to manage the situation effectively. He warned that failure to enforce national laws properly could disadvantage native traders and, in the long run, undermine the objectives of AfCFTA.
“Trade integration is important, but it must coexist with national policies that safeguard the rights and opportunities of local businesses,” he said, urging authorities to act decisively before tensions escalate and native sectors are permanently compromised.
