Lydia Quist of IMANI has argued that Ghana's retail sector needs a shift from protectionism to openness, following President Mahama's announcement at the Japan-Africa Summit to scrap the $1 million minimum capital requirement for foreign trading companies.
Her analysis, published in IMANI's Criticality Analysis of Governance and Economic Issues (August 17-23, 2025), points out that the rule under the GIPC Act was meant to protect local traders but has instead discouraged smaller foreign investors and stifled innovation. "The $1 million threshold has been a blunt instrument, a deterrent that blocked investment without meaningfully safeguarding local traders," she noted.
The Ghana Union of Traders Association (GUTA) has opposed the proposal, insisting that the retail sector must remain the preserve of Ghanaians.
While GUTA frames its stance as protecting livelihoods in the informal market, Quist argues that this protectionist instinct is increasingly at odds with the evolution of modern retail.
