The Ashanti Regional branch of Ghana Union of Traders’ Associations has endorsed efforts by Accra spare parts dealers to close foreign-owned shops, demanding strict enforcement of laws restricting retail trade to Ghanaians.
Anthony Oppong, Ashanti Regional GUTA Chairman, said the decision follows mounting frustration among local businesses over unfair competition from foreign traders, particularly targeting Nigerian retailers operating in violation of Ghana’s investment laws.
The support comes amid ongoing enforcement actions by the Abossey Okai Spare Parts Dealers Association, which began shutting down foreign-owned shops Monday to compel authorities to implement the Ghana Investment Promotion Centre Act.
“We are in full support of what they are doing. Foreigners are taking over the markets, which is very bad for all of us,” Oppong told Asaase Business, announcing plans for a regional press statement backing the initiative.
However, conflicting reports emerged as national GUTA leadership distanced itself from the shop closures, creating tension between regional and national trader organizations over tactics and leadership in addressing foreign trader issues.
The crackdown centers on enforcement of GIPC Act 865, which reserves retail trade, hawking, and market stall operations exclusively for Ghanaians unless foreign investors meet stringent requirements including minimum $1 million investment and employment of at least 20 skilled Ghanaians.
Oppong emphasized that GUTA had engaged with the Ghana Investment Promotion Centre regarding enforcement and warned the clampdown could extend beyond traditional markets to shopping malls where foreign retailers operate without proper licensing.
“It’s all based on the GIPC Act 865 that says retailing and hawking are reserved for Ghanaians and Ghanaians only. We will use all legal means available to ensure compliance,” he stated.
The Abossey Okai action, led by the association’s Director of Communications Takyi Addo, represents the most significant enforcement effort in years despite legal provisions prohibiting foreign participation in petty trading without meeting investment thresholds.
Current law allows foreign nationals to participate in retail trade only with substantial capital investment and job creation commitments, requirements that most small-scale foreign traders operating in Ghana’s markets fail to meet.
The enforcement drive highlights growing frustration among Ghanaian traders who argue that lax implementation of existing laws has allowed unfair competition that threatens local livelihoods and violates Ghana’s investment regulations.
Industry observers note that despite clear legal restrictions under Section 28 of the GIPC Act, enforcement has been inconsistent, allowing foreign traders to establish operations in markets, stores, and stalls across major commercial centers.
The Ashanti Regional GUTA chairman also expressed concern about the growing dominance of foreign multinational companies in Ghana’s trading sector, signaling broader tensions over economic sovereignty and local business protection.
The shop closure campaign occurs during heightened debate over Ghana’s foreign investment policies and their impact on local entrepreneurs, with trader associations arguing that selective enforcement undermines Ghanaian business interests.
Section 40 of Act 865 provides penalties for violations, but critics argue that weak enforcement mechanisms have rendered the legal protections ineffective in practice, necessitating direct action by trader associations.
The regional divide within GUTA reflects broader disagreements over confrontational tactics versus diplomatic engagement with authorities, though both factions agree on the need for stronger protection of Ghanaian retail interests.
