President John Dramani Mahama has reaffirmed that Ghana’s retail sector is legally reserved for citizens, emphasising that foreigners are prohibited from competing in this space.
Speaking during a media engagement on Wednesday, September 10, 2025, President Mahama said: “The current law restricts the retail sector to only Ghanaians and there are people who argue that it is anti-competition and so many other things.”
He added: “But of course in most countries you want to reserve a certain portion of the economy to the people. And so Parliament is going to look at it and eventually whatever law they pass is what we have to live with.”
The President’s remarks follow a three-day ultimatum by the Abossey Okai Spare Parts Dealers Association, which called on foreign traders to cease retail operations and restrict themselves to wholesale supply only.
A near-confrontation erupted at the Abossey Okai Spare Parts enclave on Monday, September 8, 2025, as executives of the Spare Parts Dealers Association moved to enforce Ghana’s retail trade laws.
The exercise, which involved the identification of shops owned by foreigners, was part of efforts by the Association to address what it described as persistent breaches of the Ghana Investment Promotion Centre (GIPC) Act. The law reserves retail trading in Ghana for citizens, but local traders say that foreign nationals continue to operate illegally in the sector.
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Some foreign shop owners, fearing clashes and possible enforcement, had already closed their outlets ahead of the exercise. Security personnel were stationed in the area to monitor developments as tensions remained high.
Manwhile, the Ghana Investment Promotion Centre (GIPC) Chief Executive Officer, Simon Madjie, has emphasised that the country remains committed to attracting foreign investments while safeguarding sectors legally reserved for Ghanaians.
The GIPC CEO disclosed that a new GIPC bill, currently under consideration, proposes introducing administrative fines for offenders as a more immediate deterrent than the existing framework, which relies on lengthy court processes. The bill also aims to establish a national register of all investors and businesses to enhance monitoring and compliance.
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The government has reiterated that while Ghana remains open to foreign investment, citizen-protected sectors will be defended, ensuring local traders continue to benefit from opportunities in the economy.
