Ghana classifies ECOWAS citizens as expatriates
Citizens from the Economic Community Of West African States (ECOWAS) are to brace up for more hurdles as the Ghanaian government has wielded the big stick by classifying them as expatriates under new investment laws.
This was made known by the Ghana Investment Promotion Council (GIPC). The GIPC has reviewed all the country’s rules and regulations concerning foreign investment laws, which classified ECOWAS citizens desirous of working in their country as expatriates.
Under the new move, GIPC is seeking to review foreign investment laws in the country ranging from $300,000 to $1million as minimum capital requirement as precondition for any foreign investor to do business in Ghana. What this means is that Nigerians and other ECOWAS citizens who go to work and do business in Ghana will have time limit attached to their stay. They will also come under quota restrictions and will have to renew their status at the expiration of their permits. This is against the ECOWAS protocol which allows free entry and exit for West African citizens.
Already, member countries like Nigeria, Togo and the Republic Of Benin have frowned over the move, stressing that the latest pronouncement will shut their nationals out of business.
At the event, ECOWAS executive secretary, Ibn Chambas, carpeted Ghana for such intentions, arguing that the country was not willing to reintegrate into the sub-regional market. He enjoined the authorities to consider a review of the said investment promotion council, describing it as anti-ECOWAS that will not be to the interest of member countries.
However, the GIPC said it is still committed to going ahead with the plans that many analysts believe will shut other West African countries out of the market.
On November 28, 2007, Nigerian traders in Ghana found themselves at crossroads over a business policy targeted at their businesses in Ghana. GIPC came up with a policy that every Nigerian business outfit in Ghana must pay a record $300,000 before being allowed to do business.
At the prevailing exchange rate, the sum adds up to about N48 million. Despite protests from the traders and calls for caution by other ECOWAS members, the GIPC went into action, sealing up thousands of Nigerian businesses in Accra, the country’s capital and other Ghanaian cities.
More than 20 months afterwards, the businesses and shops have remained shut. Some of the traders had expected that the new Ghanaian government of John Atta-Mills would discard the policy and allow them access to their means of livelihood.
However, there are suggestions that the clampdown on ECOWAS citizens may be more political than economic, considering the rising volume of Nigerian businesses that has contributed in shaping Ghanaian economic landscape.
The 1994 Ghana Investment Promotion Act guarantees the freedom for non-Ghanaians and was designed to attract private domestic and foreign investment to the country.
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December 15, 2008, 03:19:19 PM
