Monday, February 02, 2009

Traders vote with their feet

Members of the Ghana Union of Traders Association, (GUTA) have carried their protest against the infiltration of non-Ghanaians in the retail business to the streets.

On Wednesday the members of GUTA converged at the central business district of Accra to register their displeasure over what they perceive to be an invasion of the retail sector by foreign nationals in the full glare of the government.

As a result of the strike, shops were not opened for business, leaving the busy business district of Accra central quiet.

GUTA members are not happy about the fact that retailing of all kinds of goods such as hard wares, electrical, clothes, shoes, construction materials and so on are in the hands of foreigners.

GUTA’s anger is not only directed at the so-called Chinese investors who are now into everything, including selling toilet roll, but also at Nigerians, Indians and Lebanese nationals.

The aggrieved traders sent a clear message that retail trade is not for foreigners and charged the government and institutions responsible for regulating trade to institute proactive measures to save the retail sector; which is vital to the growth of the economy from foreign hands.

“We are not afraid of competition. But worldwide sectors like the retail sector are solely for nationals and not foreigners. We need to protest against policies that are hurting businesses,” stated the Acting President of GUTA, George Kwaku Ofori.

GUTA, the umbrella body of 13 traders’ associations has had cause to vehemently protest against the invasion of the retail sector by foreigners, contrary to the provisions of the Investment laws of Ghana, while state institutions that are to protect them look on helplessly.

It has called for ‘a clear definition of an investor with regard to retail trade in Ghana and argues that the influx of shoddy foreign goods into the market has compelled Ghanaians to resort to the importation of similar products to the detriment of local manufacturing.

Addressing GUTA members at the opera square, Mr. Ofori recalled that trading in Ghana some years back was lucrative, but regretted that things have changed and worsened in recent times because foreigners have taken over.

The association argued that foreign direct investment does not refer to such ‘cheap’ investment as retailing but involves the transfer of skills and technology through sectors such as manufacturing.

Ms Patience Prempeh of Kantamanto Hardware Dealers decried, “If Foreign Direct Investment is what these foreigners are doing now, then Ghanaians have that capacity to invest.”

She continued, “These so- called foreign investors do not contribute in any way to the Ghanaian economy. They only make their money, change into their foreign currency and repatriate them. They do not even save with the banks.”

In the opinion of the spare parts dealers, the numerous accidents being witnessed in Ghana of late is due to the inferior products from China. Their spokesperson, Mr. Asamoah Amoah, (a.k.a. Asemosa) said investment that come in should be beneficial to the economy and the natives but not deprive the people of their livelihoods.

When GUTA began its agitation, the Ghana Investment Promotion Centre (GIPC) had only managed to close down eight firms as at August 21, 2007 for violating the investment laws of the country.

At that time, Mrs. Lily Turkson of the “One Stop Shop” office of the GIPC told Public Agenda that the exercise by GIPC is just to give meaning to the provisions of Ghana Investment Promotion Centre Act, 1994 regarding “Enterprise eligible for foreign participation and minimum foreign capital requirement.”Section 19(3) of the Ghana Investment Promotion Centre Act, 1994 provides that “Notwithstanding Subsection (1) of this section, in the case of a trading enterprise involving only the purchasing and selling of goods which is either wholly or partly owned by a non-Ghanaian, there shall be an Investment of Foreign Capital, (IFC) or its equivalent in goods worth at least US $300,000.00 by way of equity capital and the enterprise shall employ at least 10 Ghanaians.”

Now, GUTA says the IFC is too low and should be reviewed from $1 million to $1.5 million. According to the traders, where the law requires that the enterprise employs at least 10 Ghanaians, the foreigners rather bring into the country one or two of their relatives and engage one or two Ghanaians as casual workers, who they discard at will.

These so-called investors, according to GUTA, often underpay as well as ill-treat the Ghanaian workers.GUTA at one time petitioned Parliament “to, as a matter of urgency, amend the business law (investment code) of the country in order to curb the alarming rate at which foreigners invade the retail sector of our economy, which is supposed to be the preserve of the Ghanaian, especially those in the informal sector.”

The petition, titled: ‘Petition by the Ghana Union Of Traders’ Associations (GUTA) on the influx of foreigners into the retail sector of our economy,’ points out that the sector ‘provides employment to the bulk of the unemployed Ghanaian youth, especially those with little or no skill, thereby reducing unemployment and poverty rates in the country.’

The Secretary-General of the Ghana Federation of Labour, Mr. Abraham Koomson in solidarity with the traders cautioned that if no action was taken, fields such as barbering and driving would soon be invaded by these foreigners.

He said it is the right of these traders to ensure that their business is not threatened and urged them to sustain their action. Meanwhile, GUTA has warned politicians not to politicize their plight. Its Acting President, George Ofori stressed that the association is not part of any political part but a recognized mouthpiece of traders in the country.
“Politicians must stay away and not infiltrate our ranks else we will fight back.”

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