Business has been slow for many Ghanain traders who blame the situabtion on not only the influx of cheap Chinese products but also insufficient legal protection and corruption.
The concern in Ghana about the Chinese invasion of the economy was illustrated with the convening ofa roundtable discussion in November last year, which looked at ways to protect small industries against the influx of Chinese products. But views on the issue are varied. Some see it as an opportunity, while others think it is destructive to the economy.
Philip Asobonteng, 45, who has operated ashop in Accra for more than 20 years, said ordinarily competition is good, but” since this one is destroying our economy, there is a need to speak up”. Last year traders closedtheir shops to protect against what they regard as unfair competion . However, this elicted no response from the government. After all, the Chinese traders are not breaking any law. The country’s investiment code stipulates that any foreigner investing a minimum of $300,000 can open a retail business in addition to that, the investment code also specified that the business should employ, at least 10 Ghanains.
Any foreigner who meets these requirements can legally start his or her own business. But, Asobonteng says they are using the laws to create hurdles for Ghanaians and he wants the government to take a stand.
Against this background, the Ghana Union of Traders, GUTA, sent a proposal to parliament last November urging members of parliament to review the investment code. They claimed that the code had not been reviewed since it was enacted 13 years ago. According to GUTA, the minimum investiment amount should be raised also be increased to 25. In addition, the commodity categories should also be reviewd, Joseph Addy, GUTA executive member, claimed that foreigners, including Chinese, were abusing the law.