Flush out foreigners in retail business - GUTA renew calls for action
The Ghana Union of Traders Association (GUTA) has asked the President-elect, Nana Addo Danqua Akufo-Addo, to make it the priority of his government to flush out foreigners who are competing with locals in the retail business.
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Given that the Ghana Investment Promotion Centre (GIPC) Act 108, bars foreigners from engaging in the retail business, the President of GUTA, Barima Ofori Ameyaw I, said the association did not expect the President-elect to face difficulties, when carrying out that mandate.
In an interview with the Graphic Business he said “This should not be difficult to do at all and we want the current government to take it seriously because the laws are already there; it’s just a matter of enforcing it,” he stated.
Barima Ameyaw I, who is the Futufou Hene of Obo KwahuTraditional area in the Eastern Region, said business activities in every country, was guided by law, and that Ghana was no different.
As a result, he wondered why the authorities in the country still allowed the influx of foreigners into the retail space, in spite of, the availability of a law that makes their actions criminal.
He thus blamed the development on the laxity in the implementation of laws, which is prevalent in the country.
“We want the new administration to take the bull by its horn and enforce the laws. We need the full enforcement of this law,” he added.
Failed attempts
GUTA had, in the past, raised numerous concerns about the influx of foreign businesses, owned particularly by Nigerians and Chinese onto the retail market.
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The traders argued that this development impacted negatively on their operations.
Although there have been several attempts by the government to flush out these foreigners, not much results were achieved, as most of the affected foreign citizens relied on the ECOWAS and other international protocols on the free movement of goods and people to remain in the trade.
The result had been a decline in the fortunes of indigenous traders, much to the detriment of members of GUTA.
GUTA’S President said this needed to be stopped else it risked forcing some of their members out of business for good.
He explained that the association was not against foreign direct investments (FDIs) into the country, given that every country needed investments but noted that “Our concern has to do with the flouting of our laws,” he said, referring to the existence of foreigners in the retail business in contravention of the GIPC Act 108 (YEAR),
Fronting and its implications
On the flip side, it is evident that many of the foreign business owners in the retail sector are in because they are assisted by Ghanaians who front for them.
Ghanaians go for the business registration for their certificates and also rent shops and hire workers for them.
Last year, there were instances where attempts by the task force to close down some shops purported to belong to foreigners were fiercely resisted because the Ghanaians behind the scenes were not happy with the action.
Meanwhile, although many have raised concerns over locals fronting for these foreigners in the retail business, the GUTA President said that was a flimsy excuse that should not be entertained.
He said if that was really the case, the government had to investigate them through the Registrar General’s Department (RGD), Ghana Revenue Authority (GRA), and the GIPC to get the details and then deal with the perpetrators.
This notwithstanding, the GUTA President said his outfit was aware of some officials who were aiding these foreigners to break the law.
“Our leaders have made us second class citizens in our own country,” he stated.
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Beyond the impact on businesses of indigenes, Barima Ameyaw I said the influx of the foreigners posed serious security problems as they would end up enriching themselves and subsequently controlling the country indirectly.
“If foreigners are being given the commanding height in our economy, then it is really a major concern,” he added.
Economic challenges
Should the President-elect succeed in flushing out the foreigners in the retail business, Barima Ameyaw I said GUTA would now want the new administration to tackle the economic challenges confronting the nation, including excessive taxes at the ports, addressing the problem of unstable electricity, high interest rates, inflation, and the instability of the cedi.
“I know this will take time but we want the new government to work around the clock to quickly turn the economy around,” he noted.
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He said if the government believed in a private sector-led economy, which would generate employment, then it needed to quickly address the challenges that had led to the collapse of many businesses.
He appealed to the incoming administration to create synergies with the private sector that would result in the creation of joint ventures.That, he said would ensure that the policies initiated and implemented by the government reflect the concerns and aspirations of the business community.
Revenue generation
Barima Ameyaw I also advised the incoming administration to plug out the loopholes in the country’s revenue generation system as a way of increasing revenue rather than increasing taxes.
He said increasing taxes would only hinder the ability of the private sector to grow, expand and employ more people.
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“We, however, do not expect the government to do this all by itself. We want to sit down with them and see how we can do it together.”
“The government should be proactive and make the private sector a part of its operations,” he added.