The presidential committee made up of the Ghana Revenue Authority, Ghana Union Traders Association, Ghana Standards Authority, Local Government, National Security, and the Immigration Service has reopened about 716 shops belonging to foreigners.

The shops were closed down last year for operating against the GIPC act 865 in the country.

Trade tension between Ghana and Nigeria has been the highlight of 2019.

Even though the two nations are leading voices in the Economic Community of West African States (ECOWAS), trade has been the source of diplomatic tensions between the two states.

Nigeria had banned the import and export of all goods through its land borders since last year August as part of what it describes as a campaign to tackle smuggling.

Its smaller neighbors many of whom rely on trade with Africa’s biggest economy have complained that this has caused severe hardship.

The president of the Ghana Union of Traders Association, Dr. Joseph Obeng in an interview last year commended the Nigerian government for protecting its nationals but was disappointed that it did not communicate the decision to other ECOWAS nations.

While the two governments were negotiating together with other ECOWAS nations, GUTA moved to enforce the GIPC Act 865 which prohibited foreigners from participating in the retail sector solely reserved for Ghanaians.

Though the action was not in retaliation to the closure of the Nigerian borders to Ghanaian traders, it was estimated that over six hundred Nigerian owned shops were affected.

The effects of these actions have been detrimental to businesses on both sides. At the height of the border closure in Nigeria, several trucks of Ghanaian goods destined for the Nigerian markets were left stranded at the SEME border with nowhere to go.

The coronavirus pandemic has exacerbated the situation for Nigerian businesses in Ghana. Some complained that they had to resort to hawking to survive the COVID-19 measures.

Other Nigerian businesses men and women in Ghana, Angola, and Malawi say they had to resort to direct delivery of their goods from China instead of importing through Nigeria.

Hitherto, traders usually get their goods from markets in Lagos and moved them by road to West African countries, but with the closure of the border, however, moving cargo from Nigeria became impossible resulting in the traders seeking alternatives.

In February the Nigerian government announced that ECOWAS was investigating the effect of the border closure on businesses.

The government of Ghana also set up a committee to look into the concerns of the GUTA members and provide a lasting solution to the impasse.

The presidential committee was made up of the Ghana Standards Authority, Ghana Revenue Authority, Ghana Union Traders Association, Local Government, National Security, and the Immigration Service.

On the recommendation of the committee, Some Nigerian retailers were allowed to reopen their shops after they provided legitimate documents allowing them to do business in the country.

The reopening exercise was carried out by the Ministry of Trade, the Ghana Revenue Authority, the Ghana Immigration Service, and the leadership of GUTA.

At the end of the exercise, about seven hundred and fifteen shops were reopened.

Ghana’s export to Nigeria was 164 million dollars in 2019 according to the United Nations COMTRADE database.

Ghana’s cocoa and cocoa preparations worth 13 million, beverages and spirits worth 4 million and foot wears worth hundred and four million dollars were traded.

Balance of trade between the two nations, in 2019 stood at 209 million dollars in favour of Ghana down from 477 million it recorded in 2018.

Historically, trade between the two nations has been amicable.

With the full implementation of the African Continental Free Trade Area, countries must be seen collaborating more with each other ever more than before.

In the case of dispute resolution among member states, the AfCFTA must have the judiciary powers to arbitrate trade disputes like these quickly and fairly as it is under the World Trade Organization WTO.

By: Mabel Faith Tannor