Ghana’s revised investment framework, which includes the removal of minimum capital requirements for foreign investors, will not open up the informal retail sector to foreign participation, the Chief Executive Officer of the Ghana Investment Promotion Centre, Simon Madjie, has clarified.
This follows the passage of the Ghana Investment Promotion Bill by Parliament, with the legislation now awaiting presidential assent. The reforms form part of efforts to modernise Ghana’s investment regime, improve competitiveness and attract foreign direct investment, while maintaining protections for local operators in designated sectors.
Speaking at a media briefing on the sidelines of a Board and Management Retreat at Peduase in Aburi on Tuesday, May 26, CEO Simon Madjie emphasised that long-standing legal protections for informal traders remain unchanged despite the policy shift on capital requirements.
“The law says that you cannot sell in the market if you are not a citizen of Ghana. Now, the definition of who is a citizen is a legal construct. So the person may not look like you and I, but could be a citizen of Ghana. That’s entirely beyond the GIPC. That’s the job of immigration and the Ministry of Interior,” he said.
He explained that the reform agenda is aimed at improving investment flows and regulatory clarity, not dismantling protections for Ghanaian traders operating in reserved sectors.
“What this means is that even as we remove the minimum capital requirement and foreign businesses are coming, they still can’t go into those areas, regardless of the amount of money that you bring in. These are areas reserved exclusively for Ghanaians,” he stressed.
Mr. Madjie noted that these protections form part of what investment law describes as a “negative list,” where certain sectors remain strictly reserved for citizens.
He further urged stronger public education to address fronting, where Ghanaian identities are allegedly used to bypass restrictions.
“We also need your help to educate Ghanaians to avoid fronting, giving our shop to people that you clearly know they ought not be in the market,” he cautioned.
The GIPC maintains that the reforms are designed to enhance investor confidence while preserving Ghana’s local content safeguards and informal sector protections.
