Thursday, May 31, 2012

GUTA issues warning to foreign retailers

The Ghana Union of Traders Association (GUTA) has issued a stern warning to foreigners engaged in retailing activities to beware and desist from it or face the consequences. 
GUTA has vowed to go all out this year to flush out foreigners who have invaded the retail sector especially when the inter agency task force has been reconstituted and would be operational soon.
The traders said they will not sit and watch their businesses collapse in the name of Ghanaian hospitality, more so when such activities contravenes the Ghana Investment Promotion Act (Act 478) .
Part two of the Act is on “Provisions Relating to Investment”. Section 19, subsection 3states 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 or its equivalent in goods worth at least $300,000.00 by way of equity capital and the enterprise shall by way of equity capital and the enterprise shall employ at least ten Ghanaians.      
Speaking to Graphic Business, the president of GUTA, Mr. George Ofori reiterated that GUTA is not driving investors away but their members are currently agitated and consequences could be grave, therefore government must protect the interest of indigenes.
“The buying and selling by the non-Ghanaians is against the Act and destroying our economy by putting pressure on the cedis. What we are saying is that we don’t want non-Ghanaians in the retail sector but we want genuine investors who will do genuine business. If buying and selling is transfer of technology then we are our own markets.”
 He complained that apart from being pushed out of business, they are also losing their shops in droves to the foreigners who are doing retailing. He said landlords and shop owners are now charging as high as between $50, 000 to $60,000 as goodwill.   
“Obviously the effects are high on the Ghanaians are prepared to pay such huge amounts. If countries like Russia, South Africa and Nigeria were able to expel foreigners from the retail sector why can’t we do same.” 
He accused successive governments of claiming that the private sector is the engine of growth but doing very little to help it grow into the giants businesses expected.
Meanwhile, the inter agency task force, comprising GUTA, the Ghana Investment Promotion Centre (GIPC), Ghana Immigration Service, Ghana Revenue Authority, Registrar General and the Inspector General of Police has been reconstituted and will be operational soon.
According to Mr. Ofori, the new communiqué when issued would have a timeline of 90 days and will take effect from the day it would be issued.

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