by Tolu Orekoya

Ghana’s recent decision to send traders and business men who are not legally registered in the country packing, has sent shockwaves throughout much of the west-African community. In particular Nigerians who have had informal business dealings are particularly concerned and see the new laws as effectively shutting them out of the economy.

However the Ghana Minister of Trade and Industry, Hannah Tetteh, spoke to the British Broadcasting Corportaion (BBC) and said that what they were doing was to enforce the laws of the country and foreign businesses are subject to the same rules and regulations as local businesses when it comes to registering their presence.

The sticking point for many of those who would end up unable to do business comes as a stipulation in Ghanaian law which says, “The Ghana Investment Promotion Centre (GIPC) Act, particularly Section 18, reserves retail, petty trading, hawking and all kinds of trading in the market for Ghanaians. Also all foreigners who wish to engage in trading activity are required to invest not less than US$300 000 and are not expected to establish their businesses in market places,” according to the official government website.

The amount needed to engage in business in the country could act as an effective barrier to trade to many small business owners.

Listen below.