The Ghana Union of Traders’ Association (GUTA) has urged authorities to take decisive action against foreigners operating in the country’s retail market.
GUTA argues that this sector, traditionally reserved for Ghanaians, is now dominated by foreign traders, particularly Chinese, who flood the market with inexpensive products.
At the Customs, Controls, and Regulations Forum organized by the Ghana Investment Promotion Centre (GIPC), GUTA President Joseph Obeng highlighted the issue.
He pointed out that foreign traders, notably those associated with China Mall and China Town, control around 40% of the market, undermining local manufacturers’ efforts.
“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.
These foreign entities, according to Obeng, import subsidized goods that are then dumped in Ghana, harming local businesses.
Obeng expressed concern that Ghanaian traders’ market share has dwindled to just 20%, with the majority of goods being imported by foreign traders.
“The local traders’ component is only 20%. The bulk of the goods is brought in by foreign traders.”
He also noted that foreign traders often repatriate their earnings, exacerbating the depreciation of the cedi, as they do not bring in the necessary foreign exchange for trading but instead turn to the black market.
“They don’t bring the correspondent forex for trading, they only go to the black market and change the forex and destroy our economy.”
Despite existing laws that mandate certain retail businesses to be operated by Ghanaians, enforcement has been lacking, allowing foreign traders to increasingly encroach on this space.
The forum organized by the GIPC serves as a platform to address issues affecting businesses and investors, aiming to prioritize concerns and inform policy reforms.