Ghana: Retail trade under siege

Information gathered by The Chronicle points to a looming threat in the country, as the executive and members of the Ghana Union of Traders Association (GUTA) are gearing up for a massive demonstration to hit the streets of Accra in the next couple of weeks.By Ghanaian Chronicle (Ghana), by Charles Takyi-Boadu 11.09.2005
Indications are that members of the association have girded up their loins long ago, for what insiders consider to be probably the worst demonstration ever to hit the capital city over their dissatisfaction with foreigners' invasion into areas of the retail sector of businesses, stipulated under our laws to be the preserve of indigenous Ghanaians.
Though the leadership of the association has refused to either confirm or deny this information through the paper's fact-finding mission, reliable sources close to the leadership have hinted that though the leadership has so far restrained members, they may not be able to contain them for long.
Some shop owners of the association told the paper last week that should the authorities fail to take positive steps in forestalling the unrestrained invasion, nothing can hold them back from taking to the streets.
Sources, hinted that notwithstanding the several attempts by the association and other equally concerned bodies to draw the attention of government and other stakeholders of the dangers indigenous businesses are exposed to, little or virtually nothing has been done to forestall what is predicted to be a doom for the economy.
The influx of these foreigners, mostly from the sub-region and China, into the retail area, according to observers, does not only threaten indigenous businesses but also result in a massive evasion of the country's tax system as well as pose security problems, since most of these foreigners are said not to have valid traveling and working documents to enable monitoring of their activities.
Some of the traders believed that all these activities are being allowed to go on under the pretext of ECOWAS protocols, which contravene our sovereign laws on investment.
The situation has prompted many to raise doubts about the vigilance of government and other security agencies in regulating the activities of foreigners in this country, leading to a feeling of insecurity among traders in none than their own country.
Some traders the paper spoke to, expressed grave concern about the strict security checks and at times abuses that they are taken through anytime they were on business trips to countries like Nigeria and Togo, also ECOWAS member countries.
According to most of them, one was not even allowed to sell products from the Ghanaian market in those countries, let alone go into competition with their indigenous businesses and products, as we allowed them to do in this country, as if there are virtually no laws and statutes protecting indigenous businesses.
"Master, just think of the recent action of the Nigerian government to ban the importation of Ghanaian products into that country, what do you think it was about? Nothing, but to protect national sovereignty and indigenous businesses," said the President of the Ghana Electrical Dealers' Association (GEDA), Mr. J. K. Obeng.
He wondered why the Ghanaian government could, like our neighbours do, enforce the provisions of the investment code, in the interest of local traders, as these activities compound the problem of capital flight we are all complaining about.
Mr. Obeng further indicated that they were not against foreigners trading in Ghana, but that they must find their levels. He said the scale envisaged under our laws for them is as demonstrated by Melcom, Max Mart and a few others, and appealed to the authorities to ensure that others got into that scale of trading, but not to displace the indigenous retailer.
Some of the traders questioned whether the Ghanaian government gives credence to national sovereignty and constitutional provisions or kowtow to unfavorable international protocols, which have severe implications for the economy.