Under the Ghana Investment Promotion Centre (GIPC) Act, certain retail and service sectors are explicitly reserved for indigenous Ghanaians, and the law prohibits foreign nationals from controlling these areas. However, Louis Yaw Afful, an international trade expert and AfCFTA & Investment Promotion consultant, says unclear enforcement and weak coordination among regulatory agencies have allowed foreign nationals to dominate these sectors.
In an interview with The High Street Journal, Afful explained that the problem stems from the thin line between trade and investment in Ghana. While the GIPC Act governs large-scale, capital-intensive investments, retail and small-scale trade fall under the Ministry of Trade’s jurisdiction.
“Most of the time, these agencies operate in silos, GIPC looks at investments, Trade looks at retail, and coordination is limited,” he said. According to Afful, this gap has enabled foreign traders, often using Ghanaian associates as fronts, to operate in sectors legally reserved for natives.
Afful also highlighted the GIPC amendment bill, currently awaiting parliamentary approval, which is expected to clarify the definition of investment, define sectors reserved for natives, and introduce sanctions for violations. “Once passed, the amendment will provide the legal teeth needed to enforce the rules and prevent foreigners from bypassing restrictions through Ghanaian fronts,” he said.
Despite the legal framework, foreign nationals continue to operate in retail and small-scale service sectors reserved for indigenous Ghanaians. Many register businesses through Ghanaian associates, exploiting weak enforcement, fragmented oversight, and limited coordination among agencies responsible for trade and investment.
The consequences are already evident. Native traders are being edged out of markets intended to support their livelihoods, while government revenue is lost due to informal operations and uncollected licensing fees. Rising frustration among local traders could escalate tensions if authorities fail to act decisively.
To address these challenges, Afful advocates stronger enforcement of GIPC regulations and trade licensing rules, alongside coordinated inspections involving the Registrar-General, GIPC, Ghana Revenue Authority, and local assemblies. He also emphasized the importance of bringing stakeholders together, regulators, traders, and associations, to discuss solutions and ensure compliance. Public education campaigns are also critical to ensure traders understand which sectors are legally reserved for natives.
Afful’s warning underscores a broader reality: while Ghana is committed to promoting trade and investment under the AfCFTA framework, national laws protecting native commerce cannot be overlooked. Without urgent reforms, stronger enforcement, collaborative solutions, and public awareness, including the anticipated GIPC amendment, the very sectors meant to empower Ghanaian traders could be permanently compromised.
