The following was contributed by ASFL Local Coordinator Adusei Akwasi

A market in Ghana

Recently, the retail market in Ghana has been flooded by foreigners especially Indians, Nigerians, Chinese and Lebanese who import goods from their countries and sell at cheaper rates in the retail market. Indigenous Ghanaian traders are not convenient with this. They feel they are losing their customers to the foreign traders.

The Ghana Investment Promotion Centre (GIPC) Act 1994 (ACT 478) section 18 stipulates clearly businesses that are exclusive to only indigenous Ghanaians. This Act was revised in GIPC Act 2013 (ACT 865) which banned all foreigners from engaging in the retail market. The Act also warns citizens who connive with foreigners in retail business in Ghana. In short, any foreigner who engage in retail marketing would be arrested and face the wrath of the law.

Since indigenous traders started losing customers to foreign competitors, the mother association, Ghana Union of Traders Association (GUTA) lobbied on the Ministry of Trade and Industry and the Ghana Investment Promotion Centre (GIPC) to enforce the country’s investment laws which bars foreigners from directly engaging in the retail trade. The government then issued 30^th June, 2015 as the deadline for foreigners to cease their activities in the retail markets.

The government also set up a task force that comprise of personnel of the Ghana Police Service, GUTA, Ghana Revenue Authority and officials of the Ministry of Trade and Industry to expropriate and lock all retail shops owned by foreigners.

Proponents of this policy argue that the government’s action is in full compliance with the law; opponents contend that free trade interaction creates value, reduces prices, gives access to variety and quality goods, and promote marvelous cooperation among strangers.

The Ghanaian government needs to revise the trade law. They should not tell people what to trade, where to trade and whom to trade with. This should be left to voluntary interaction by people. Ghanaian government should instead look with open mind on the great system of social cooperation that is in the market economy. The marvelous cooperation of hundreds of strangers working cooperatively and productively in ways that greatly enrich each other’s lives is the key to economic advancement.

A Country like Ghana needs free trade to survive its economic hardships. Government should liberalize the economy to promote growth and socio-economic benefits. Cheaper goods from foreigners is the least of government’s worries. There is a more pressing problem of power generation.

Ghana has a more pressing problem of power generation.

Ghana is currently facing electricity challenges, popularly known as the “Dumsor Crisis”. This is having a ripple effect on people, and industries, as a lot of them are already shifting base. Unfortunately, the government is clueless about its solutions.

Electricity Company of Ghana (ECG) was incorporated in 1963 and became a limited company when shares were first sold in the firm in February 1997. However, the company is still owned by the government.

The enactment of the Electricity Corporation Decree, 1967 (NLCD 125) stipulates that ECG was to remain the entity solely responsible for electricity supply and the distribution of networks nationwide thereby enjoying monopoly power. The corporations’ sphere of operations has been limited to the southern parts of Ghana which also had the greater concentration of customers. ECG now depends on Volta River Authority, a state owned entity for overall transmission and distribution of power.

Despite government efforts at financing the operations of the ECG, the utility service provider continues to incur huge debts and provide poor services which in turn undermine its operational capability. The manipulative control of the state on the distribution of power is why ECG is not performing well.

The Act that empowers that ECG as the sole distributor of power in Ghana must be repealed. This will go a long way in promoting private participation in the energy sector. History has a proof that private players manage and control businesses better than the state. Privatization of the energy sector would help the Gold coast overcome the ‘Dumsor crisis’.

Healthy competition will lead to efficiency and innovation, and will open doors to unlimited opportunities for citizens.