A new study has called for coordinated policy reforms to address significant financial, regulatory, market, and institutional barriers confronting West African immigrant entrepreneurs operating in Ghana. This research highlights how current systems often exclude these businesses, hindering their growth and formalisation within the Ghanaian economy.
The study, titled “Navigation Strategies of West African Immigrant Entrepreneurs in a Secondary Ghanaian City,” found that many immigrant entrepreneurs face limited access to formal banking services. This forces them to rely on alternative financial strategies, such as supplier-credit systems where goods are supplied on consignment and payment occurs after sales. The research suggests that addressing these challenges requires interventions at both national and local levels.
This situation fits into Ghana's broader economic narrative of fostering an inclusive business environment while managing foreign investment and local participation. Ghana has long sought to attract investment and promote entrepreneurship. However, specific policies, like the GIPC investment threshold, can inadvertently create barriers for smaller, yet vital, economic actors. The study’s findings underscore the need for policies that support diverse business models within the national economic framework.
The policy brief, authored by Mr. Omar Faruq Mahmudul-Hasan, Professor Elijah Yendaw, and Professor Moses Naiim Fuseini of the University of Business and Integrated Development Studies (UBIDS), explicitly stated, “reform the national investment and banking rules that exclude immigrant entrepreneurs, coordinate enforcement locally, and recognise the collective strategies entrepreneurs have already built.” This statement emphasizes the need for practical, responsive policy changes.
What happens next will largely depend on how policymakers respond to these recommendations. Decision-makers in government and financial institutions will need to consider reviewing the Ghana Investment Promotion Centre (GIPC) investment threshold. They may also explore introducing a tiered system for ECOWAS nationals to ensure investment requirements do not exclude small-scale immigrant traders. Financial institutions could develop products that recognise alternative forms of collateral and credit histories, including the supplier-credit arrangements already used by these entrepreneurs. This could lead to greater financial inclusion and formalisation of immigrant-owned businesses, potentially boosting local economies.
The study, conducted in 2025, focused on immigrant-owned small businesses that had operated in Wa for at least one year. It involved 37 participants, including 32 immigrant entrepreneurs from Nigeria, Niger, Burkina Faso, and Mali. Five institutional key informants also contributed to the research. These participants provided valuable insights into the daily operational challenges faced by these businesses.
Researchers found that some Nigerian entrepreneurs pooled their resources to meet the GHS 1 million GIPC investment threshold. This collective action demonstrates the innovative strategies immigrant entrepreneurs employ to navigate existing regulations. They also adopt various strategies to integrate into the local market, including learning local languages and customs. Developing personalised relationships with customers and avoiding sectors reserved for Ghanaian citizens are also common practices.
The brief further indicated that immigrant entrepreneurs engage specialised agents along the Ghana-Burkina Faso-Niger corridor to manage cross-border logistics. These strategies show that immigrant entrepreneurs are not only responding to institutional constraints but also developing mechanisms to reshape their business environment. Their resilience and adaptability are key factors in their survival and growth.
The study also called for a re-examination of the Ghana Card requirement for access to banking services. It argued that this requirement contributes to the exclusion of some immigrant entrepreneurs from formal financial services. Removing or modifying this barrier could significantly improve financial access for many. Encouraging registered business associations and improving access to appropriate financial products could further support formalisation and financial inclusion. This comprehensive approach is crucial for unlocking the full economic potential of immigrant entrepreneurship in Ghana.