Automobile companies assembling vehicles in Ghana have produced 4,700 vehicles between 2020 and 2022.
This number represents 9.7% of the country’s new car market.
The automobile industry in Ghana is valued at $4.6 billion in 2021 and is expected to reach $10.64 billion by 2027.
Automobile companies doing assembly in Ghana includes Toyota Vehicle Assembly Plant, Volkswagen, Nissan, Sinotruck, KIA and Katanka
President of the Automobile Assemblers Association of Ghana (AAAG) and Mr Jeffrey Oppong Peprah announced this maiden Ghana Automotive Summit in Accra.
The summit discussed latest trends, challenges, and opportunities in the automobile industry.
Senior level professionals from the entire industry, including vehicle manufacturers, component manufacturers, engineers, government, the financial sector, insurance, international organizations, and the media were present at the summit.
The theme for the summit was ‘Creating a New Economic Backbone for Ghana and the Sub-Region”.
Mr Peprah disclosed that local production is expected to account for 60% of new vehicles market by 2027.
He said the summit will advance the sector as experts examine the future and how technology and innovations will shape it.
He noted that the summit was important because apart from the long-established automotive industries of South Africa and Morocco, Ghana is leading the way in Africa in establishing an automotive industry ecosystem based on an effective automotive value chain.
He explained that the automotive value chain encompasses all the elements of manufacturing vehicles and components, retailing, financing, servicing, used vehicles, and the aftermarket as well as providing innovative mobility solutions in the future.
He stated that one of the key drivers of the automotive industry in Ghana has been government’s commitment to improving the business environment and promoting foreign investment through its Automotive Development Policy.
“The Automotive Development Policy seeks to make Ghana a fully integrated and competitive industrial hub for the automotive industry in the sub-region” he stressed.
Jeffrey Peprah added that as a result of the policy, the industry has made significant progress, with several major automakers establishing their presence in Ghana and local businesses increasingly participating in the automotive value chain.
“Ghana now has seven car assembly plants namely Volkswagen, Toyota, Sinotruck, Nissan, Peugeot and Kantanka Automobiles with Rana Motors opening their Kia facility last month, which all assemble semi-knocked down units,” he said.
He noted that the policy has not only brought much-needed jobs and economic activity to the country, but has also opened opportunities in the finance, supply chain, and tech ecosystems.
He hinted that AAAG and the African Association of Automotive Manufacturers (AAAM) are also currently working closely on component study tours to boost the manufacturing capacity in the sub-region to attract potential investors into the Ghanaian automotive market.
“We at the AAAG believe that with the full implementation of the policy, this can be grown to around 60% by 2027” he stressed.
He further said that the Ghana automotive industry was valued at 4.6 billion US Dollars in 2021 and is forecasted to reach 10.64 billion US Dollars by 2027; hence, establishing the Ghana Automotive Industry Development Center as part of the policy earlier this year was an important milestone in helping to grow the industry.
The Minister for Trade and Industry, Kobina Tahir Hammond also stated that the theme for the summit resonates with and finds foundational echoes in government’s industrial developmental agenda.
He said that the continent can no longer accept the dumping of overused and overaged vehicles on our markets as a normal way of doing business in the automotive market.
“As a first step, however, we recognize the need to make new and affordable vehicles widely available” he added.
He noted that as the rest of the world is confronted with economic developmental headwinds, Africa must reposition itself in readiness to welcome car manufacturers to bolster supply and boost prospects for intra-regional trade.
“The African Automotive market is expected to grow in size from 1,325,890 units in 2023 to 1,777,690 in 2028, at a Compound Annual Growth Rate (CAGR) of 6.04%.
Over the medium term, the market is expected to grow rapidly due to supportive Government incentives, urbanization and infrastructural development across major cities” he stressed.
The Minister urged the AAAG that government will continue to provide a stable and forward-looking policy environment and incentive framework for the Automotive industry to thrive.
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