The Ghana Union of Traders Association (GUTA) has voiced its concerns regarding the increasing dominance of foreign companies in the country's retail space.

In an interview with Joy News, President of GUTA, Dr. Joseph Obeng, highlighted the adverse effects of this phenomenon on local businesses and the national economy.

Dr. Obeng pointed out that foreign entities, such as China Mall and Chinatown, have captured over 40% of the market share, leaving little room for indigenous traders.

He stressed that the absence of a retention policy allows these companies to repatriate their profits, depriving Ghana of much-needed foreign earnings.

"The retail spirit has already been overtaken by these foreigners. These companies that I mentioned have taken over 40% of our market share. What is left for the indigenous? All the good, juicy areas of the economy are being dominated by these foreigners, and we don't have any retention to make sure that whatever we get, we retain some," Dr. Obeng stated.

He noted that this situation contributes to the country's balance of trade surplus not reflecting in the strength of the cedi, as profits are converted into foreign exchange and sent abroad.

Dr. Obeng called for a revision of the investment law to direct foreign investments towards more preferred sectors such as manufacturing, high technology, and mechanised agriculture, rather than retail.

He argued that encouraging local manufacturing and import substitution is crucial for economic growth and sustainability.

"We are not going to do anything unlawful. The investment law is there to drive investors to its preferred area. Their preferred area is not trading or retailing, their preferred area is manufacturing. The preferred areas are highly technological areas of the economy. The preferred areas are agriculture, mechanised agriculture," he asserted.

GUTA's concerns come at a time when the Ghanaian government is seeking ways to strengthen the local economy and support indigenous businesses.

ID/AE

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