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Introduction
Local spare-parts dealers at Accra’s Abossey Okai market have recently reignited threats to evict foreign shop owners, citing Ghana’s investment laws. In early September 2025, the Abossey Okai Spare Parts Dealers Association announced it would begin enforcing Section 27(1) of the Ghana Investment Promotion Centre (GIPC) Act (Act 865 of 2013) on Sept. 8. The section “prohibits non-citizens or enterprises not wholly owned by Ghanaians from engaging in retail trading, hawking, or selling goods in stalls or markets.”
The dealers say that for years, many non-citizens, particularly the Chinese, have “continued to dominate petty trading” in markets like theirs, weakening local businesses. This move echoes earlier clashes at other hubs (e.g., Suame Magazine in Kumasi) over the same law. However, mainstream trade bodies and officials quickly clarified there is no new law change: GUTA (the national traders’ union) disowned any outright closure plan, and Ghana’s Trade and Investment Minister, Elizabeth Ofosu-Adjare who actively engages with international platforms like the Ghana Investment Promotion Centre (GIPC) to showcase opportunities in industry and trade and GIPC boss Simon Madjie, reaffirmed that retail limits remain part of Ghanaian law.
Fact-check and Myths
- Myth: “Ghana has banned all foreign traders.”
Fact: No new ban was passed. The GIPC Act’s restrictions on “petty trade” have existed since 2013. Officials emphasise that recent media reports misunderstood the law: the Abossey Okai association’s plan was its own initiative (not a government order). GUTA confirmed it did not authorise a mass shop closure. President Mahama’s announcement to review foreign investment rules was misreported, and the GIPC CEO clarified that changes will target sectors like manufacturing, not retail – so the $1 million threshold for foreign retailers still stands.
- Myth: “This is targeted at specific nationalities.
Fact: The law refers to all non-Ghanaians. Former Trade Minister Alan Kyerematen stressed in 2021 that enforcement was not directed against any country or ECOWAS citizens in particular. In practice, disputes have involved traders from China, Nigeria, and elsewhere, but legally the restrictions apply equally to any non-citizen.
- Myth: “All foreign shop owners are operating illegally.”
Fact: Some foreign investors meet legal requirements, but many do not. By law, a foreigner may only do ordinary retail business if the enterprise invests at least $1 million and hires 20 Ghanaians (or meets other GIPC capital rules). Local traders claim many stalls lack work permits, tax IDs, or GIPC registration. Conversely, foreign traders point out that a few registered and paid taxes, yet shops were closed.
- Myth: “Government is discriminating against foreigners.”
Fact: Ghana’s law actually forbids nationality-based bias. It guarantees that foreign investors have the same obligations and rights as Ghanaians and that no special treatment is given due to origin. Officials insist enforcement is about upholding equal rules, not xenophobia.
What the Law Says
Ghana’s GIPC Act (2013) explicitly reserves small-scale trading for citizens and imposes heavy conditions on foreign participation. Section 27(1) states that anyone “who is not a citizen or an enterprise which is not wholly owned by a citizen” may not engage in “the sale of goods or provision of services in a market, petty trading or hawking or selling of goods in a store.” Other reserved sectors include the operation of small taxi/car rental fleets, barber and beauty shops, printing scratch cards and stationery, retailing finished pharmaceuticals, and producing or supplying sachet water.
Foreigners can legally invest in many other sectors, but to trade in imported goods, they must meet high thresholds: a non-citizen engaging in any trading enterprise must deposit at least $1,000,000 and employ 20 Ghanaians. In practice, this means a Chinese or Nigerian company could operate a large retail business if it meets that condition. However, it cannot just buy cheap goods abroad and undercut small shops without the required capital or permits. (By contrast, joint ventures with Ghanaian partners have lower thresholds, for example, $200,000 in foreign equity.) The Abossey Okai association reminds its members to abide by taxes and import duties that some foreign traders ignore, so enforcing the law would “protect local enterprise” from unfair competition.
Enforcement measures have happened sporadically. In August 2020, a government taskforce (including GIPC, Customs, Immigration, and others) inspected Suame Magazine in Kumasi and locked 92 shops of traders found flouting the law. Earlier that year, it had locked 41 Suame shops for the same reason. Notices were posted telling owners to regularise with the Trade Ministry or face closure. The aim is not to ban lawful businesses but to compel compliance: as one officer put it, “We lock and paste notices. We are not saying they shouldn’t trade, but should do the right thing.”
Expert and Stakeholder Voices
- GIPC / Government: GIPC CEO Simon Madjie has publicly urged collaboration to stop “fronting” (foreigners trading through Ghanaian fronts) and reaffirmed that retail trade remains protected under Ghanaian law. Former Trade Minister Alan Kyerematen stressed in 2021 that enforcement was about fairness—“we cannot have foreigners breaking these laws” if Ghanaians follow them—and insisted it wasn’t aimed at any one nationality.
- Local Traders: Abossey Okai leaders argue they are simply defending jobs. Takyi Addo (association spokesperson) told DUBAWA that their actions are “to ensure strict adherence to the law” – not against investment – and noted that some Chinese investors bring in $10M of goods yet still sell retail, which the law forbids.
Co-chair Clement Boateng recalled at a news conference that “for over 15 years” the association has petitioned the government to enforce the law against foreigners. They claim foreigners in their market often lack tax IDs or work permits, costing the treasury and local businesses. Henry Okyere, the Abossey Okai chairman, warned recently that “table-top” stalls run by foreign nationals were “significantly eroding their market share”, and under the “current legal framework” such informal foreign retail shouldn’t be allowed.
- Immigrant Traders: Representing foreign traders, Kizito Obiora of the Nigerian Union of Traders (Suame) lamented that even compliant members had shops shuttered. He said many Nigerians struggle to renew residency permits due to what they feel are unfair obstacles by immigration officials. Some traders fear that the climate is becoming hostile enough that they may have to return home.
- Policy context, why capital requirements exist: Economist Appiah Kusi Adomako of CUTS International cautions that scrapping Ghana’s minimum capital rules for foreign investors could harm local traders. He notes that other countries use sector-specific approaches — Vietnam protects health while easing tech rules, Rwanda shields mining and tourism, and South Africa restricts retail to protect small traders. His point is that Ghana can reform its laws, but wholesale deregulation risks overwhelming indigenous businesses.
Conclusion
The controversy at Abossey Okai is less about a new policy and more about enforcing an old one. Ghana’s law still reserves market retail for citizens, and any non-citizen retailer must meet steep conditions. Traders see this as defending local livelihoods; officials say enforcement must be fair and transparent. As DUBAWA observes, this dispute highlights “ongoing challenges in balancing Ghana’s investment-attraction efforts with protection of local business interests”. For now, key stakeholders have paused any dramatic action – after a GIPC-GUTA briefing reassured traders that retail protections remain in place.
