The proliferation of foreign informal traders has sparked a storm in Ghana forcing the government to issue a statement promising a clampdown.

President John Atta Mills 'office this week issued a strongly worded statement calling for a government taskforce to look into the matter.

A storm has been brewing since last year after traders in the second city of Kumasi threatened to block foreigners from retail and informal businesses.

Mills' government was accused of failing to protect local businesspeople by not enforcing investment laws.


The Ghana Investment Promotion Centre Act (GIPC) prohibits foreigners from "selling anything in a market, petty trading, hawking or selling in kiosks."

But these activities in cities like Accra and Kumasi are dominated by Nigerians and other West Africans.

Between 2009 and 2010 the government closed downed several shops owned by Nigerians in the capital Accra and other cities after pressure from locals.

any foreigner wishing to engage in trading in Ghana must provide proof of having a deposit of US$300,000

The latest intervention by the government follows a meeting between Vice President John Dramani Mahama and officials from the ministry of Trade, GIPC, department of company registry, immigration, police and revenue authority.

"It also came out that several non-Ghanaian traders were not complying with both immigration and tax laws of the country," reads part of the statement from the presidency.

"As it stands now, any foreigner wishing to engage in trading in Ghana must provide proof of having a deposit of US$300,000 (about $180 000) in his/her company account or goods worth that amount in stock."

The meeting reportedly "acknowledged the useful contributions non-Ghanaian investors play in the development of the Ghanaian economy."

But the officials expressed concern that "some of the foreigners posing as wholesalers turn around to retail their products at cheaper costs after selling the same goods to Ghanaians engaged in the retail business."

Nigerians continue to flock to neighbouring countries in search of greener pastures and Ghana, the closest English-speaking country, is among their favourite destinations.

In their defence, the Nigerian traders say Economic Community of West African States (ECOWAS) protocols allow for free movement of people and goods within member states.

The foreign traders have also called for protection from the Ghanaian government saying some of them have been harassed by locals.

Nigerians say most of the shops that were being closed down do not even trade in goods made in their country but sell items imported from Asia, Europe and America.

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