GUTA’s demonstration misplaced -- MOTI

By Konrad Kodjo Djaisi

 The Ministry of Trade and Industry (MOTI) has refuted claims that it is not doing enough to get rid of foreign traders engaged in petty trading from the markets.

 The Ghana Union of Traders’ Association (GUTA) has asked government to with a sense of urgency eject foreigner retailers from Ghanaian markets after several failed attempts.

The Director of Domestic Trade and Distribution, MOTI, Mr. K. N Atuahene, said GUTA is aware since they have two representatives on the task-force.

 â€œWhen the inter-agency task force announced October 16 as the deadline for foreigners to comply with the GIPC directives, GUTA interpreted it to mean the task-force was going to enter the markets to close down the shops of the illegal operators.

Therefore, when the deadline passed and GUTA’s expectations were not met, they thought government had reneged on its earlier pronouncement and decided to go public with a demonstration.”

He told B&FT that he had just come out of a meeting with representatives of GUTA, where the issue was explained to them properly and they were satisfied.

 He however indicated that the action initiated by the inter-agency task-force to ensure compliance with the GIPC Act is still in force, and the task-force will resume its checks soon to make sure foreigners do not engage in petty trading.

The Ghana Investment Promotion Centre (GIPC,) Act 478, bars foreigners from petty trading, hawking or small trading businesses. But over the last ten years, especially as the economy has expanded, there have been many foreign traders who have established in the country -- many of whom have not complied fully with the GIPC law.

Mr. Atuahene however indicated that some exceptions to the GIPC Act were made for ECOWAS citizens in recognition of the ECOWAS Protocol on the right of residence and establishment. He said, specifically, ECOWAS citizens are not being asked to invest US$300,000.00 -- neither are they being asked to employ ten Ghanaians in their businesses.

“They are however expected to meet the same conditions that Ghanaian citizens who start businesses are expected to comply with. This means that they are required to register businesses with the Registrar-General’s Department; they are required to register with the Ghana Revenue Authority and pay taxes in the same way as Ghanaians are expected to do. And because they are not our nationals, they are expected to properly apply for residential status in Ghana.”

He indicated that this time around, no exceptions are being made for ECOWAS nationals in terms of being given a grace period to comply with the law.

They will be rounded-up like any other foreigner found in breach of the country’s laws. The October 16 deadline was given to allow these citizens to comply with the law and not a day to make incursions into the market to effect the provisions of the law, he added.

Mr. Atuahene noted that GUTA’s main concern is profit-erosion, but added that there are regional and sub-regional conventions that are binding to Ghana -- and all these considerations ought to be factored in when taking certain actions.

The Ministry of Trade and Industry in July this year set up the National inter-agency task-force to get rid of non-Ghanaians operating in petty trading and other forms of business activities in the markets.

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