In 1970, Ghana implemented a law restricting foreigners from owning small and medium-sized businesses, marking a significant shift in the country's economic landscape.

The legislation enacted by the government aimed to boost local participation and control in key sectors of the economy, aligning with the domestic industrialisation agenda and the broader goal of economic independence and empowerment.

That year, the enforcement of the law affected approximately 600 foreign-owned businesses across the nation, leading to a transfer of ownership to Ghanaians or the closure of non-compliant enterprises.

While Ghanaians purchased some of these businesses, others were unable to adapt and were forced to shut down.

Within two weeks of the law being enforced, there was a massive changeover to Ghanaian ownership, which authorities believed was necessary to prioritise indigenous participation in economic growth.

The policy, although some believe was counterproductive, reinforced Ghana's commitment to fostering local entrepreneurship but also caused significant disruptions for affected foreign business owners, who somewhat played a major role in the domestic economy.

The implementation of that very law in the current economic sphere will no doubt have many arguing whether it provided a pivotal moment in Ghana's post-independence economic development.

In Ghana today, Small and Medium Enterprises (SMEs) are the backbone of the domestic economy, contributing significantly to employment, innovation, and GDP growth.

These businesses form a vital part of the domestic industrialisation agenda, driving local entrepreneurship and reducing dependency on imports.

Watch the video below:

Footage: In 1970, A Law preventing foreigners from owning small and medium businesses in Ghana was enforced. The Act affected about 600 foreign-owned businesses. Many of them were bought by Ghanaians whiles others just had to shut down. pic.twitter.com/BblkLGNb9Z

— GHANA FACTS & HISTORY (@GhanaianMuseum) November 26, 2024