23.07.2020 Business & Finance

Ghana Ready To Become Automobile Manufacturing Hub In Africa – Finance Minister

Ghana Ready To Become Automobile Manufacturing Hub In Africa – Finance Minister
LISTEN JUL 23, 2020

The development of the automobile industry in Ghana will make the country well-positioned to become the new automobile manufacturing hub in Africa, according to the Finance Minister, Ken Ofori-Atta.

While delivering an address in Parliament on the mid-year budget review on Thursday, he stated that “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.”

The government in March 2020 made a strong case for the passage of a law that will lay the foundation for an automobile industry in the country.

There was an amendment to the Customs Act, 2015 (Act 891) which provides some incentives to Ghanaian car manufacturers through the Ghana Automotive Industry Policy.

This is to pave the way for the industry through collaboration with the private sector – global, regional and domestic, to ensure that more jobs are created in the areas of automotive assembly and the manufacture of components and parts, with several positive spillover effects into other sectors of the economy.

Mr. Ofori-Atta, in relation to this, stated in the mid-year budget review that “some of the leading global automobile companies have already established commercial interests in Ghana to assemble their brand of vehicles”.

The Kantanka Group, an indigenous Ghanaian company, has already been formally granted a license to continue its auto assembly operations and to benefit from incentives under the Ghana Automotive Manufacturing Development Policy.

Automobile Industry Development Center

The Finance Minister, as part of the review, disclosed that the government is set to set up an Automobile Industry Development Center as part of efforts to build the automobile industry.

According to him, this development centre will “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. Furthermore, it will manage an Automotive Skills and Technology Upgrading Programme to provide requisite skills for the industry.”

— citinewsroom

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