Finance Minister Ken Ofori-Atta has said that Ghana is on-course to become the centre for automobile manufacturing on the African continent.
He made this comment during his presentation of the mid-year supplementary budget review at Parliament on 23 July, 2020.
According to Mr Ofori-Atta, Ghana will leverage on its ongoing efforts to improve the automobile industry to ensure that the country is well placed to reap the benefits of the African Continental Free Trade Area.
“It is envisaged that the development of the automobile industry in Ghana, which is one of the new Strategic Anchor Initiatives being promoted under the Ministry of Trade and Industry’s Industrial Transformation Agenda, will constitute a significant step towards import substitution and enhancing exports, particularly within the context of the African Continental Free Trade Area (AfCFTA). Ghana is well positioned to become the new automobile manufacturing hub in Africa.”
Why government is confident about the auto industry.
The Minister indicated that many foreign and well known manufacturers of vehicles have responded well to the government’s agenda to elevate the country’s automobile industry.
“In response to Government’s introduction of a new comprehensive Automotive Manufacturing Development Policy, some of the leading global automobile companies have already established commercial interests in Ghana to assembly their brand of vehicles.
“In March 2020, the Volkswagen Group rolled out the first VW locally assembled vehicle. VW Ghana is currently producing six different brands of vehicles, namely Tiguan, Teramont, Amarok, Passat, Polo and Caddy. Both the Toyota and Nissan Groups are also positioned to establish assemble operations before the end of the year.
“Sinotruk, a leading global manufacturer of Heavy Duty Trucks is also assembling a variety of trucks in Ghana through Zonda Tec Ghana Limited.”
He also pointed out that, government is about instituting a centre that will regulate the activities of the auto industry to ensure its fluid operations.
“In order to support these new major developments, Government will establish an Automobile Industry Development Center which will among other things, coordinate the technical processes for licensing vehicle assemblers and manufacturers and monitor their compliance with industry regulations and standards. The Center will also coordinate the implementation of a Vehicle Financing Scheme which will link financial institutions to individuals and groups interested in purchasing newly assembled vehicles in Ghana.”
According to the Finance Minister, this centre will further “manage an Automotive Skills and Technology Upgrading Programme” which will focus on providing appropriate, relevant and timely skills to the players in the industry.
Kantanka Group
The Finance Minister also said that Kantanka Group of Companies has been given official license to continue assembling vehicles in the country. The local auto assembling company is also to gain from government’s incentives, according to the Minister.
“An indigenous Ghanaian company, the Kantanka Group has also been formally granted a license to continue their auto assembly operations in Ghana and to benefit from incentives under the Ghana Automotive Manufacturing Development Policy.”
