GUTA Threatens to Close Foreign Shops over Retail Takeover in Ashanti Region

By Tina Moses Sam

The Ghana Union of Traders Association (GUTA) in the Ashanti Region has threatened to compel foreign nationals to shut down their shops if the Ministry of Trade, Agribusiness and Industry fails to reach what they describe as a fair and firm agreement with them over retail trade regulations.

The tensions between GUTA and foreign shop owners have been escalating over the past few months, highlighting broader issues of trade policies, economic sovereignty, and the livelihoods of local entrepreneurs in Ghana. GUTA’s concern primarily revolves around the recent surge of foreign retail businesses, particularly from neighboring West African countries and other regions, operating in Ghana. While some foreign traders have been operating legally within the framework of Ghanaian laws, others are accused of bypassing regulations, such as registration requirements and licensing procedures. GUTA claims that these unregulated foreign shops are engaging in retail activities that are supposed to be reserved for Ghanaian nationals, according to the country’s trade policies.

The association argues that the dominance of foreign retailers is leading to unfair competition, which adversely affects local traders especially small-scale businesses that have been operating in Ghana for years. They contend that many local traders are struggling to survive as foreign shops offer lower prices due to cheaper goods or different sourcing strategies, making it difficult for Ghanaian entrepreneurs to compete.

GUTA is calling for stricter enforcement of trade policies, including licensing, registration, and retail restrictions, to protect Ghanaian traders and ensure a level playing field.

The government’s position has been mixed, with some officials emphasizing the importance of open markets and attracting foreign investment, while others acknowledge the need to safeguard local businesses. The controversy also raises questions about the implementation and enforcement of trade policies, national economic sovereignty, and how to balance foreign investment with the protection of local enterprise.

The Ashanti Regional Vice Chairman of GUTA, Nana Nyame, expressed deep concern over what he described as the increasing takeover of local markets by foreign operators, contrary to existing trade laws which reserve certain retail activities for Ghanaians.

“We have not seen enough commitment from successive governments to support local traders. In many of the markets, Nigerians and Chinese nationals are dominating the space. They don’t pay their taxes, and in some cases, one individual can own as many as six shops, far more than many Ghanaian traders can afford.

“We recently met the KMA, they told us to allow them keep at least one of their shops open but we said we won’t agree. GUTA,” he lamented.

Meanwhile, the Association of Ghana Industries is proposing that foreign-owned shops operating in the retail sector allocate at least 40 percent of their shelf space to locally manufactured goods.

The Ashanti Regional Manager of AGI, Thompson Appam Attebila, argues that if foreign nationals choose to venture into retail trade instead of focusing solely on wholesale activities, they must demonstrate a clear commitment to promoting Ghanaian products.

“If we are going to allow them to do the retailing which was supposed to be reserved for us, then we should push them to sell part of what we produce in the country.

“If we give them a quota to sell for example 40 percent of made in Ghana produce, it will give local producers some advantage,” he said.