Foreign Businesses Pose Threat to Local Economy – Youth for Accountable Governance

Foreigners engaging in retail trading in Ghana have been identified as a contributing factor to the economic challenges faced by the country, according to a press statement released by Youth for Accountable Governance. The convenor of the group, Kwesi Botchway Jnr, expressed concerns about the growing presence of foreign businesses in local markets and its potential impact on the economy.

While foreign investment can bring certain benefits, such as job creation and technology transfer, it also presents challenges for local businesses. One of the main concerns highlighted by the group is the unfair competition faced by local retailers. Foreign businesses often have access to greater capital, established supply chains, and economies of scale, giving them a competitive advantage. This can result in the displacement of local businesses, job losses, and a decline in economic opportunities for Ghanaians.

Furthermore, the dominance of foreign retailers can lead to a drain of profits out of the country, which has negative implications for the balance of trade and overall economic stability.

To address this issue, the Government has enacted laws regulating foreigners engaging in retail trading in Ghana. Under the Ghana Investment Promotion Centre Act, 2013, Act 865, certain activities such as the retail of finished pharmaceutical products, operation of beauty or barber salons, operation of taxi or car hire services with a fleet of less than 25 vehicles, provision of services in the market, and others are limited to only Ghanaians. These provisions are also recognized by the ECOWAS PROTOCOLS on free trade.

However, despite these regulations, several foreigners are engaging in retail activities and blatantly flouting Ghana’s rules. This not only contributes to the influx of pirated and substandard goods in the Ghanaian market but also raises questions about the proper declaration and repatriation of their profits.

Kwesi Botchway Jnr raised concerns about the lack of oversight on how and where these foreigners save their money. He questioned whether they find dubious ways to take their funds back to their respective countries without proper taxation and documentation.

In the coming days, Youth for Accountable Governance plans to release a documentary highlighting the issues faced by Ghanaian retailers due to the activities of some foreign traders. The documentary will shed light on how these foreigners evade taxes and fail to issue required receipts to Ghanaian customers.

The group calls on all stakeholders to work collectively to address this issue and safeguard the interests of Ghana. By enforcing existing laws and regulations, Ghana can ensure a fair and competitive business environment that benefits both local businesses and the overall economy.

It is crucial for the country to take action now to protect the interests of ordinary Ghanaians and address