Accra, Jan 26, GNA – Every year on 26 January, the world pauses to reflect on the promise of clean energy.
This year’s International Day of Clean Energy arrives at a moment when Ghana’s transport sector stands at a decisive crossroads – one where climate responsibility, industrial growth and job creation converge.
For Ghana, clean energy is no longer a distant aspiration. It is central to the country’s commitment to reduce greenhouse gas emissions by 15 per cent by 2030 under its Nationally Determined Contribution, while simultaneously expanding economic opportunity and safeguarding public health.
The transport sector remains one of the country’s most pressing challenges. It accounts for nearly half of all energy-related emissions and has recorded an increase of almost 15 per cent between 2015 and 2023.
The drivers of this trend are well known: a heavy reliance on fossil fuels, an ageing vehicle fleet and rapid urbanisation – two of which are directly linked to the automotive sector.
Yet, within that same sector lies a powerful opportunity.
The UK–Ghana Jobs and Economic Transformation (JET) Programme positions the automotive industry as a strategic lever for accelerating Ghana’s clean energy transition, aligning climate ambition with industrial competitiveness and inclusive growth.
Ms Terri Sarch, Development Director at the British High Commission in Accra, explains that Ghana’s automotive sector has the potential to drive cleaner transport, strengthen local manufacturing and deliver sustainable economic opportunities through targeted policies and investments that support mutual growth.
Globally, the case for clean energy is compelling. Evidence shows that every dollar invested in renewables generates three times more jobs than equivalent investment in fossil fuels. For Ghana, this translates into cleaner air, skilled employment and a more resilient industrial base.
The baseline, however, reveals the scale of the task ahead. An estimated 3.2 million vehicles operate in Ghana, with an average age of 14 years. About 100,000 vehicles are imported annually, 80 per cent of which are used – often more than a decade old, inefficient and highly polluting.
Electric vehicles, particularly two- and three-wheelers, are gradually gaining ground and complementing the country’s 24-hour economy ambition. Even so, the transition to a modern, low-emission vehicle fleet remains slow and could take decades without deliberate intervention.
Air pollution sharpens the urgency. It is identified as the second leading cause of death in Ghana after HIV, tuberculosis and malaria combined, imposing an estimated economic cost of three billion dollars annually – about four per cent of GDP.
In response, the Ministry of Trade, Agribusiness and Industry, with support from the UK-Ghana JET Programme, completed a 2025 mid-term review of the Ghana Automotive Development Policy.
The policy has already unlocked about 98 million dollars in investment from global automotive brands, including Volkswagen, Toyota, KIA, Nissan and Hyundai, some in partnership with domestic firms such as Kantanka. Seven modern vehicle assembly plants now operate in the country, with a combined installed capacity of 140,000 units per year.
Yet, domestic demand for new vehicles remains far below this capacity, constraining the sector’s ability to drive emissions reduction, create jobs at scale and serve regional export markets.
It is at this point that policy choices become decisive.
Stakeholders emphasise the need to fast-track approval and activation of the revised Ghana Automotive Development Policy, particularly its clean energy provisions.
Accelerating this process would send a strong signal to investors, enable electric vehicle and two- and three-wheeler manufacturers to participate fully, and unlock incentives critical for local assembly and gradual component manufacturing.
There is also a clear call to move decisively on vehicle financing reform. The current dominance of cash-based vehicle purchases excludes millions of Ghanaians from access to cleaner mobility.
Establishing structured, asset-backed financing schemes – in partnership with participating financial institutions – would significantly expand demand for locally assembled vehicles, including electric models, while supporting financial inclusion.
Equally important is strategic government procurement. As the single largest buyer of vehicles in the country, prioritising locally assembled vehicles for public use can play a catalytic role.
Such a move would boost confidence in domestic manufacturing, stabilise demand, and reinforce Ghana’s broader industrialisation agenda.
Together, these measures offer more than environmental gains. They promise cleaner air, safer roads, a healthier vehicle fleet, thousands of skilled jobs and a competitive manufacturing base that meets global standards.
As Ghana marks the International Day of Clean Energy, the message resonates with clarity and urgency: the solutions exist, the investments are underway, and the moment to accelerate action is now – so the country can lead in inclusive, clean manufacturing across West Africa.
GNA
Edited by Beatrice Asamani Savage