The President of the Automotive Assemblers Association of Ghana (AAAG), Jeffrey Oppong Peprah, who said this, added that between 2020 and 2022, the total local production of vehicles rose to 4,700, accounting for 9.7 per cent of the new car market in the country.

To consolidate the gains, he called on the government to expedite action on the full implementation of the Automotive Development Policy (ADP) to transition the nation from a vehicle assembling hub to a component manufacturing one.

Mr Peprah also stressed the need for the government to implement other provisions in the ADP, including the banning of the sale of used vehicles older than 10 years and stopping the sale of salvaged vehicles.

Automotive summit

The president was speaking at the maiden automotive summit in Accra last Tuesday by the AAAG, on the theme: “Creating a new economic backbone for Ghana and the sub-region”.

Key players in the automobile industry such as the African Association of Automotive Manufacturers (AAAM), as well as state institutions such as the Ghana Standards Authority (GSA), the Ghana Integrated Aluminium Development Corporation (GIADEC), the  Ghana Investment Promotion Centre (GIPC) and some financial institutions participated in the summit.

Also present were Neoplan, Japan Motors, Peugeot and Nissan who showcased their products.

Context

The government introduced the ADP in 2019 in a bid to make the country a fully integrated and competitive industrial hub of the automotive industry in the sub-region.

The implementation of the policy has indeed brought some gains to the industry, with major automakers establishing their presence in the country and increasing the participation of local businesses in the automotive value chain.

Since the policy was rolled out, six vehicle assembly plants producing eight global brands of vehicles for the domestic, regional and continental market have established their presence in the country.

They are Volkswagen, Toyota, Suzuki, Nissan, Peugeot, Hyundai, Changan and KIA, including Kantanka Automobile Limited.

Commitment

The Minister of Trade and Industry, Kobina Tahir Hammond, assured the AAAG that the government was committed to the full implementation of ADP to achieve the target of making the country the automotive hub of Africa.

In line with that, he said the government would continue to provide a stable and forward-looking policy environment and incentive framework for the industry to thrive.

Mr Hammond also said that efforts would be made to halt the dumping of overused and overage vehicles on the market.

“As the rest of the world is confronted with economic developmental headwinds, Africa must reposition itself in readiness to welcome car manufacturers to bolster our own supply and boost our prospects for intra-regional trade,” he said.

The minister further said that the development of components and parts’ manufacturing policy in the country would enhance local content for the after-market and ultimately, component supplies for vehicle assemblers.

He said harnessing the opportunities in the industry required more cross-country investment cooperation, harmonisation of efforts and innovation-sharing.

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