By Morkporkpor Anku
Accra, June 27, GNA – Government will continue to provide a stable and forward-looking policy environment and incentive framework for the Automotive industry to thrive, Mr K.T Hammond, the Minister of Trade and Industry, has said.
“Together, we are fully invested in the vision of developing the automotive industry and we cannot afford to fail,” he added.
Mr Hammond was speaking at the maiden edition of the Ghana Automotive Summit 2023 and the inauguration of the Automobile Assemblers Association of Ghana (AAAG) on the theme: “Creating a new economic backbone for Ghana and the Sub-Region” in Accra.
The summit brought together leading experts and industry professionals in the sector to discuss the latest trends, challenges, and opportunities in the automobile industry.
The AAAG membership includes Volkswagen Ghana, Japan Motors, Rana Motors, Kantanka Automobile, Silverstar Ghana, and Stallion Group Toyota-Tsusho Company with Associate members being Toyota Ghana and CFAO Motors Ghana.
The Minister said the Government had always been clear that its strategic transformation of the economy could not be achieved without active participation and partnership with the private sector.
He said such a partnership would ensure that Ghana crystalised its emerging position as an attractive manufacturing hub in Africa, and actively contributed to expanded continental trade and investment.
Mr Hammond said the automotive market was expected to grow from 1,325,890 units in 2023 to
1,777,690 in 2028, at a Compound Annual Growth rate of 6.04 per cent.
Over the medium term, the market is expected to grow rapidly due to the goverment’s supportive incentives, urbanization, and infrastructural development across major cities.
He said it had been recognised that this was a major market opportunity that no country could tap into its own strength.
“This is where the intermediation role of the AfCFTA Secretariat and the financing muscle of AFRIEXIMBANK can make a big difference for emerging automotive hubs in Africa, such as Ghana,” he said.
He said harnessing these opportunities, greater cross-country investment cooperation, harmonization of efforts, and innovation-sharing were required.
The Minister said there was no better way to plug into the industry with concerted efforts, except
through constructive dialogue initiatives such as this maiden Automotive Summit.
He said the country’s Automotive Development Policy opened the gateway for private sector investment targeted at the Automotive Assembly segment of the industry.
He said since the opening of this floodgate, six Vehicle Assembly Plants producing Eight Global Brands of Vehicles for the domestic, regional, and continental markets had established their presence in the country.
These are Volkswagen, Toyota, Suzuki, Nissan, Peugeot, Hyundai, Changan, KIA, and Kantanka Automobile Limited.
Mr Jeffrey Oppong Peprah, AAAG President, said one of the key drivers of the automotive industry in Ghana had been the government’s commitment to improving the business environment and promoting foreign investment through its Automotive Development Policy.
He said the policy sought to make Ghana a fully integrated and competitive industrial hub for the automotive industry in the sub-region.
This has included efforts to streamline the import and export process, as well as the development of infrastructure such as ports and roads, through its customs procedures as well as incentives for homegrown assemblers.
He said because of the policy, the industry had made significant progress, with several major automakers establishing their presence here in Ghana and local businesses increasingly participating in the automotive value chain.
Mr Oppong Peprah said this had not only brought much-needed jobs and economic activity to the country, but it has also opened opportunities in the finance, supply chain, and tech ecosystems.
He said AAAG and the African Association of Automotive Manufacturers were also currently working closely on component study tours to boost the manufacturing capacity in the sub-region while
attracting potential investors into the Ghanaian automotive market.
GNA