The business community in the Ashanti region is worried about the proliferation of retail shops established by foreign companies across the country.
At a business summit in Kumasi, organised by Transparency International Ghana, the Association of Ghana Industries, traders and other local business stakeholders observed with concern the growing number of ‘Chinese Malls’ sprouting in various parts of the country.
The Ashanti region has, in the last few years, seen increasing establishments of these foreign shopping malls that are into retailing goods at relatively low prices.
President of the Federation of Kumasi Traders, Nana Akwasi Prempeh, argues the activities of the foreign malls are negatively impacting their businesses as they must compete to sell the same imported products.
“The very products we sell at the various markets are the very ones sold by these Chinese in their malls at a lower price. These products are produced in their country of origin, so they are more affordable. Unlike us, who have to exchange to their currency, which is more expensive and buy from them to sell the goods in Ghana. The competition we are getting from them is high,” he noted.
The local business operators want policy reforms that would heavily invest in and cushion their trading activities against unhealthy competition from foreign investors.
The Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865), stipulates specific minimum foreign equity requirements for investor-owned enterprises, including a minimum of 1-million-dollar capital requirement and employment of 20 skilled Ghanaians.
Althoughthe government has announced plans to reduce this cap to attract more foreign investments, Head of the GIPC in the Ashanti region, Michael Otchere, revealed that a review of the policy is ongoing to ensure local business protection.
“We are going to ensure that the employment quota of Ghanaians in these companies is higher. We may consider putting into place measures that ensure that 90% of the staff in these retailing shops are locals,” he noted.
However, the traders are recommending that the government rather permits these foreign companies to only establish as wholesalers.
Manager for the Association of Ghana Industries in the Ashanti, Bono and Bono East regions, Thompson Atta Attebila, believes such measures would ensure local retailers buy from these companies and save them the burden of travelling to import goods.
“This would ensure that they don’t take the businesses from the locals. When they bring and we want to buy it, it is easy. Some African countries, like South Africa, have these policies in place. Or they can even be made to retail 50% of their foreign goods and 50% of our local goods,” Mr Attebila suggested.
The roundtable dialogue on advocating policy reform for a positive investment environment in Ghana by Transparency International Ghana assembled business associations, policy makers, regulatory institutions, private sector actors, and civil society groups.
The event aimed at strengthening multi-stakeholder engagement and advocacy for reforms that promote a transparent, accountable and attractive investment climate in Ghana.
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Source: www.myjoyonline.com