The Ghana Union of Traders’ Association (GUTA) is urging authorities to take decisive action and crack down on foreign involvement in the retail sector.
GUTA highlights that the retail market, once exclusively reserved for Ghanaians, has now become a haven for foreigners, particularly Chinese traders, who flood the market with inexpensive products.
Addressing the Customs, Controls, and Regulations Forum organized by the Ghana Investment Promotion Centre (GIPC), GUTA President Joseph Obeng expressed concern that foreigners are saturating Ghana’s retail sector with subsidized goods from abroad.
Mr. Obeng emphasized that this trend is gradually squeezing out Ghanaian traders and manufacturers from the market.
“We have China Mall and China Town, which have taken over 40% of the market, and are derailing the efforts of local manufacturers.”
“All they do is to have their subsidized goods being dumped here (in Ghana) and we do not have the courage to clamp on them,” he opined.
He disclosed that the market share of Ghanaian traders continues to decline.
“The local traders’ component is only 20%. The bulk of the goods is brought in by foreign traders.”
He elaborated that the activities of foreign traders, who frequently repatriate their earnings in foreign currencies, contribute to the depreciation of the cedi.
“They don’t bring the correspondent forex for trading, they only go to the black market and change the forex and destroy our economy.”
Over time, regulators have neglected to address the problem of dumping in Ghana’s retail sector. Despite the country’s laws mandating that certain retail enterprises be reserved for Ghanaians, it seems that foreigners are gradually encroaching on such domains.
The Customs, Controls, and Regulations forum, organized by the Ghana Investment Promotion Centre, aims to discuss issues impacting businesses and the investor community. It serves as a platform to address investor concerns and shape policy reforms.