The Ghana Union of Traders’ Associations (GUTA) has raised alarm over the growing dominance of Chinese-owned shopping malls in Ghana’s retail sector.
GUTA warned that the rapid expansion of Chinese malls is taking a significant share of their market and threatening the survival of local businesses.
According to the association, Chinese malls now control an estimated 60 per cent of the retail market, leaving Ghanaian traders struggling to compete and prompting calls for government intervention.
GUTA President Clement Boateng said the development was particularly worrying because it was happening at a time when improvements in the broader economic environment were expected to create better conditions for traders.
Speaking on Joy News’ PM Express on Thursday, November 5, Clement Boateng acknowledged that key economic indicators were showing positive signs but argued that the growing dominance of Chinese shopping malls was undermining the gains local businesses should be making.
“If you all look at the microeconomic indices, one will say that they are all pointing to a very positive direction and definitely supposed to have a bearing on whatever activities that, as traders, we perform,” Clement Boateng said.
However, Clement Boateng said the increasing number of Chinese-owned malls was taking a significant portion of the market and making competition difficult for domestic traders.
“These Chinese shopping malls are springing up, and these shopping malls are taking about 60 per cent of our market share, and we think it is having a very negative impact as far as local businesses are concerned,” he added.
The GUTA president therefore urged the relevant authorities to take a closer look at the operations of the malls and examine their impact on Ghanaian businesses.
However, beyond the competition they pose, the GUTA president also expressed concern that profits generated by the foreign-owned businesses could be transferred outside the country rather than being retained within the local economy.
“These Chinese malls will repatriate their profits away. But if businesses, local businesses are doing well, definitely all the monies will remain here,” he said.
The GUTA president’s comments reflect GUTA’s growing concerns about the competitive challenges confronting local traders as Chinese-owned retail outlets continue to expand across the country.
GUTA wants the authorities to pay closer attention to the trend and its implications for Ghanaian-owned businesses, although Mr Boateng did not specify the regulatory interventions he believes should be introduced.
Meanwhile, Ghana National Chamber of Commerce and Industry (GNCCI) CEO Mark Badu-Aboagye has said that Ghana’s single-digit inflation offers some comfort.
The GNCCI CEO, however, warned that rising inflation in locally manufactured goods shows pressure on businesses has not eased enough.
According to him, business conditions have improved, but the rise in inflation for local goods showed the recovery remained incomplete.
Speaking on Joy News’ PM Express Business Edition, Mark Badu-Aboagye stated, “If you look at the numbers, the cost of locally manufactured goods, the inflation for it went up a bit, which should tell you that we are still not out of the woods yet.”
“Relatively, business has been good. Things are a bit better as compared to previous years.”
He further disclosed that businesses had also contributed to single-digit inflation by limiting price increases.
“So if you see inflation at a single digit, among other factors, the fact that businesses have not been increasing their prices excessively.”
He, however, pointed to the national average of 5.5 per cent, admitting that some regions recorded higher inflation.
“There are outliers. Some may have higher inflation, even in the regional context.”
Mark Badu-Aboagye identified exchange rate stability as a significant contributor to lower inflation. Production costs had also played a role.
He, however, argued that additional tariff relief, alongside the tax measures, could have brought down the cost of locally manufactured goods.
“Inflation would have been a bit lower,” he said.
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