Ghana: Foreign retailers cited for
currency depreciation
The Ghana Union of Traders Association (GUTA) is attributing the sharp
depreciation of the Ghana
cedi against major currencies to the illegal activities of foreigners in the
retail sector. GUTA President, George Ofori, has cited this as one of the
justifications in the renewed drive to flush out foreigners operating in the
retail business, emphasizing their threat to the Ghanaian economy.
According
to him, the high demand for the dollar to meet the huge imports non-Ghanaians
involved in the retail trade results in scarcity, pushing the exchange rate
higher.
“These foreigners come in as manufacturers’ representatives who are here to take commission on behalf of their manufacturing firms in those areas… and so that foreigner could be able to bring in about 400 containers in a year whilst a Ghanaian could afford a maximum of only 20 containers in a year; and after selling their goods, all of them are going to the same exchange market to change the money from cedi to dollars”, he stated.
A National Taskforce monitoring activities in the retail business has issued a June 20 ultimatum to foreigners in retail businesses to relocate or face the law.
This directive is in enforcement of the Ghana Investment Promotion Centre (GIPC) Law, Act 478, clause 18, which stipulates that “the sale of anything whatsoever in the market, petty trading, hawking or selling from a kiosk at any place is a wholly reserved activity for Ghanaians”.
Mr. Ofori says allowing the foreign traders to thrive is inimical to the Ghanaian retailer because “in effect, Ghana is the loser and if our economy is destroyed by these foreigners they will go back and leave the economy for us to repair the damage ourselves”.
He is peeved at the social-economic impact of foreign investors and traders flouting the country’s laws on retail trade.
“The social impact is that the indigenes who are occupying the shops are being kicked out for the foreigners to take over their shops because they’ve not got that much money to pay and occupy the shops”, stated the GUTA President.
Mr. Ofori is however confident the taskforce will succeed in the second attempt to protect local businesses.
“These foreigners come in as manufacturers’ representatives who are here to take commission on behalf of their manufacturing firms in those areas… and so that foreigner could be able to bring in about 400 containers in a year whilst a Ghanaian could afford a maximum of only 20 containers in a year; and after selling their goods, all of them are going to the same exchange market to change the money from cedi to dollars”, he stated.
A National Taskforce monitoring activities in the retail business has issued a June 20 ultimatum to foreigners in retail businesses to relocate or face the law.
This directive is in enforcement of the Ghana Investment Promotion Centre (GIPC) Law, Act 478, clause 18, which stipulates that “the sale of anything whatsoever in the market, petty trading, hawking or selling from a kiosk at any place is a wholly reserved activity for Ghanaians”.
Mr. Ofori says allowing the foreign traders to thrive is inimical to the Ghanaian retailer because “in effect, Ghana is the loser and if our economy is destroyed by these foreigners they will go back and leave the economy for us to repair the damage ourselves”.
He is peeved at the social-economic impact of foreign investors and traders flouting the country’s laws on retail trade.
“The social impact is that the indigenes who are occupying the shops are being kicked out for the foreigners to take over their shops because they’ve not got that much money to pay and occupy the shops”, stated the GUTA President.
Mr. Ofori is however confident the taskforce will succeed in the second attempt to protect local businesses.
Kofi
Adu Domfeh AfricaNews reporter in Kumasi,
Ghana
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