'Over 40% of our businesses have been taken over by Chinese companies' – GUTA laments

The Ghana Union of Traders Association (GUTA) has attributed the struggles of Ghanaian traders in the retail industry to the influx of Chinese companies in the space.

According to the President of the Union, Dr. Joseph Obeng, these Chinese companies have taken over 40 percent of businesses belonging to members of GUTA.

Dr Obeng, who was a guest on Accra-based TV3’s Hot Issues program on May 26, said the general influx of foreign companies in the retail trade space was having a dire effect on the growth of local companies.

“Our major problem is with the Chinese, and we are taking this matter seriously. For instance, the China Town and China Mall, these companies are taking a chunk of our businesses, making up over 40 per cent,” Dr Obeng said.

When asked whether Ghanaian businesses trade their goods at higher prices hence customers prefer these Chinese firms, the GUTA president said, “It is psychological because we go to China to buy the goods and bring them back, so once they [Chinese] are already here in Ghana to engage in wholesale and retail, they take advantage of the consumers by not providing quality, giving an illusion of low pricing. Yet Ghanaians troop there all the time to purchase their goods and items.”

The GUTA president said the current depreciation of the cedi could likely be attributed to these Chinese businesses, as he believes they do not bring the corresponding funding capital into Ghana.

“The investment law just tells them to show evidence of goods worth $1 million, so they just bring goods amounting to that figure and employ about 20 Ghanaians. We have pressed on the government about the foreign exchange challenges, yet these Chinese people continue to bring goods from their manufacturers in China straight into their warehouses in Ghana,” Dr Obeng claimed.

“This is taking a toll on us,” the GUTA president lamented.

Foreigners in retail space: Our major problem is the influx of Chinese. Chinese companies in Ghana are taking over 40% of our businesses in the country - Dr Joseph Obeng, GUTA President#HotIssues pic.twitter.com/aauaBw3ePe

— #TV3GH (@tv3_ghana) May 27, 2024