Accra: The Ghana Union of Traders Association (GUTA) has called on the government to immediately intervene to protect local traders against foreign dominance and the imminent collapse of Ghanaian indigenous businesses.
According to Ghana News Agency, Mr. Joseph Obeng, President of GUTA, stated that approximately 60 percent of Ghanaian local trade has been lost to foreigners, predominantly Chinese and Nigerians, who are rapidly taking over the retail market. Speaking with the agency over the weekend, he expressed concerns over the ineffective enforcement of investment laws, which allows foreigners to encroach upon indigenous trade spaces, leaving local businesses struggling.
Mr. Obeng highlighted the significant presence of Chinese traders in industries such as stationary and printing, noting the bustling activity around areas like Chinatown and China Mall. He explained that the dominance of foreign companies in the retail sector, combined with the lack of a retention policy, permits these companies to repatriate their profits, depriving Ghana of vital foreign earnings and exacerbating foreign exchange pressures.
He also reported on a recent market tour with the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), which confirmed that Nigerian traders have taken over significant portions of the mobile phones and accessories market. The President of GUTA advocated for a revision of Ghana's investment laws, emphasizing the need for not only enhancing these laws but also ensuring their effective enforcement. This would protect local businesses and ensure that foreign investments benefit the country.
Mr. Obeng called on the government to facilitate access to affordable credit for local traders through banks, enabling them to expand their operations and compete more effectively. He also stressed the necessity of a competition law to guide market activities and prevent unfair competition, which would help level the playing field and ensure that local businesses are not unfairly disadvantaged.
