Tensions continue to simmer in Ghana’s retail trade sector, driven by ongoing disputes between Ghanaian traders and foreign nationals, particularly Nigerians, over the legality of foreign participation in local retail businesses.

The Abossey Okai Spare Parts Dealers Association has announced plans to begin an enforcement exercise on Monday, September 8, 2025, aimed at ensuring strict compliance with the Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865).

According to a statement signed by the Association’s Director of Communications, Takyi Addo, the operation will specifically target violations of Section 27(1) of the Act, which prohibits non-citizens or enterprises not wholly owned by Ghanaians from engaging in retail trading, hawking, or selling goods in stalls or markets.

This move has reignited debate over the legal framework governing investment and trade in Ghana, and its intersection with regional agreements under ECOWAS.

Understanding the GIPC Act

The GIPC Act was designed to promote and protect investments in Ghana by creating a conducive environment for investors.

However, certain sectors, such as retail trading, market stall operations, beauty salons, barbering shops, and the sale of finished pharmaceutical products, are reserved exclusively for Ghanaian citizens.

Foreign nationals may participate in retail trade only if they invest a minimum of US$1 million in cash or relevant goods and services, and employ at least 20 skilled Ghanaians, as stipulated in Section 28(4) of the Act.

Failure to meet these requirements constitutes a breach of the law.

Additionally, any Ghanaian or non-Ghanaian who rents out a market stall to a foreigner also violates the Act and is subject to legal penalties.

Abossey Okai traders to enforce law against foreign petty trading

ECOWAS Protocol vs. National Law

The Revised Treaty of ECOWAS, particularly Chapter II, Article 3, promotes the removal of trade barriers and the harmonisation of trade policies to establish a Free Trade Area, Customs Union, and Common Market across West Africa.

It also guarantees the free movement of ECOWAS citizens within member states.

However, in Ghana, the GIPC law often clashes with ECOWAS provisions, creating legal and operational friction between local traders and foreign nationals.

This contradiction has fueled tensions, especially between Ghanaian and Nigerian traders.

The Ghana-Nigeria retail trade dispute

Over the years, disputes have flared over the closure and reopening of foreign-owned shops in areas such as Tip Toe Lane, Abossey Okai, and Rawlings Park.

Trade unions including the Ghana Union of Traders Association (GUTA) and the Abossey Okai Spare Parts Dealers Association have consistently demanded that foreign traders produce legal documentation proving their right to operate, citing the GIPC law as their basis.

Meanwhile, the Nigerian Union of Traders Association (NUTA) has defended its members’ right to trade under the ECOWAS protocol.

They argued that the regional agreement permits free trade among member states.

This ongoing misunderstanding has led to multiple demonstrations and calls for legal clarity.

A call for harmonisation

The General Secretary of the All Nigerian Community in Ghana, Isaac Osahon Ekhator, has urged the Ghanaian government to amend the GIPC law to align with ECOWAS protocols, allowing citizens of member states to trade freely across borders.

Until a lasting solution is found, the tension between national law and regional agreements will likely persist, with implications for both local businesses and foreign traders operating in Ghana.

SA/MA

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