Minister for Trade and Industry,, Alan Kyerematen, has disclosed that the Ministry will lead the establishment of four automotive assembly plants in the country.
According to him, this will be achieved by the end of 2022 under the Ghana Automotive Development Programme.
Mr. Kyerematen made this announcement at a meeting between the German Corporation and other diplomats from the German Embassy. At the meeting, the Trade Minister signed a 540,000 euro grant for the establishment of an auto desk at the ministry.
The grant will equally expedite the development of some selected industrial parks in the country.
“By the end of 2022, the Ghana Automotive Development Programme will lead to the establishment of four assembly plants. There will be some leading global auto manufacturing companies including Toyota-Suzuki, Nissan, Kia and Hyundai in addition to the current vehicle assembly operations of Kantanka Automobile Limited, Volkswagen and Sinotruck”.
Currently, South Korean Automobile giants, Hyundai and Kia are the latest to announce their intentions to set up assembling plants. They are optimistic in achieving this by next year.
Automotive Programme Management Unit
Mr. Kyerematen further commended the German government for its cooperation in supporting this special initiative. In addition, he noted that the alliance will support the One-Stop Automotive Programme Management Unit.
The unit, he explained will be responsible for coordinating the implementation of the GADP. Also, it is intended to serve as a One-Stop-Centre for auto assembly companies and other stakeholders in the auto industry.
This includes component and parts manufacturers, dealerships, and other companies interested in participating in the industry.
Mr. Kyerematen further revealed that the ministry is ready to “receive and evaluate applications” from automobile companies.
According to him, the evaluation process will also cover “investment plans from auto assembly and component manufacturing companies in Ghana”.
Astate-of-the-art training centre for technology and skills transfer will also be established to help build a competent labour force for the various specializations in the automotive sector.
Establishment of industrial parks
As part of the deal, the German Corporation and Ministry of Trade will develop some industrial parks in the country.
The development of selected industrial zones and parks via collaboration with local and international parks’ developers form part of the collaboration
Government in 2017, launched a 10-point Industrial Transformation Agenda to expand the manufacturing sector. This was in a bid to reduce unemployment and accelerate socio-economic development.
The Agenda sought to position Ghana’s industrial landscape around certain industrial sectors and products.
The grant agreement to achieve this was between MoTI and GIZ to contribute to the implementation of the programmes.
Mr. Kyerematen in a keynote speech at the signing ceremony expressed confidence that the cooperation will transform the automotive industry.
He further noted that it will also attract more German investors into the industrial park initiative.
“In this regard, government appreciates the support of the German Cooperation for the Ghana Automotive Development Programme and the Industrial Park and Special Economic Zones Initiative”.
