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Tensions Simmer in Ghana's Retail Trade Sector Over Disputes with Foreign Nationals

Strategic Insights

— 1 min read

As tensions continue to escalate in Ghana's retail trade sector, driven by ongoing disputes between Ghanaian traders and foreign nationals, particularly Nigerians, over the legality of foreign participation in local retail businesses, Abossey Okai Spare Parts Dealers Association has announced plans to enforce compliance with the Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865). The operation, which began on Monday, September 8, 2025, aims to target violations of Section 27(1) of the Act, prohibiting non-citizens or enterprises not wholly owned by Ghanaians from engaging in retail trading. This move has reignited debate over the legal framework governing investment and trade in Ghana and its intersection with regional agreements under ECOWAS.

Key Takeaways:

  • The GIPC Act, 2013 (Act 865) prohibits non-citizens or enterprises not wholly owned by Ghanaians from engaging in retail trading, hawking, or selling goods in stalls or markets.
  • Foreign nationals may participate in retail trade only if they invest a minimum of US$1 million in cash or relevant goods and services and employ at least 20 skilled Ghanaians.
  • Failure to meet these requirements constitutes a breach of the law, and any Ghanaian or non-Ghanaian who rents out a market stall to a foreigner also violates the Act.
  • The Revised Treaty of ECOWAS promotes the removal of trade barriers and the harmonisation of trade policies, but Ghana's GIPC law clashes with ECOWAS provisions, creating friction between local traders and foreign nationals.
  • Disputes have flared over the closure and reopening of foreign-owned shops in areas such as Tip Toe Lane, Abossey Okai, and Rawlings Park.
  • The Ghana-Nigeria retail trade dispute has led to ongoing misunderstandings, demonstrations, and calls for legal clarity.

Statistics:

  • US$1 million: the minimum investment required for foreign nationals to participate in retail trade.
  • 20: the minimum number of skilled Ghanaians required to be employed by foreign nationals engaging in retail trade.
  • 2013: the year the GIPC Act was passed.
  • 2025: the year the enforcement exercise by Abossey Okai Spare Parts Dealers Association began.

Sources:

  • Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865)
  • ECOWAS Revised Treaty of 2003
  • Ghana Web, "Tensions continue to simmer in Ghana's retail trade sector, September 2025"

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