'Five of world’s six leading automobile companies assembling cars in Ghana' — Alan Kyerematen

Minister for Trade and Industry, Hon. Alan Kyerematen has disclosed that five out of the World’s six leading Automobile Companies are currently producing vehicles in Ghana.

Hon Alan Kyerematen made this remark at the inuagration of Nissan Vehicle Assembly Plant at the Tema Industrial Area on Thursday, March 31, 2022.

In attendance at the inauguration were President Akufo-Addo, Japanese Ambassador to Ghana, Mr. Hisanobu Mochizuki, Ministers of State, Chairman and Managing Director of Japan Motors Trading Company Limited, members of the diplomatic corps among other dignitaries present.

According to the Mr Kyerematen, Ghana’s Automotive Development Policy has become a masterpiece of the automotive industry presenting itself as a template for other sub-Saharan African countries to adopt. Currently present in Ghana are Volkswagen (VW), Toyota, Nissan and others with Kantanka Automobile Company being the main local vehicle manufacturer.

The minister also noted that the investor community is expecting the full implementation of the policy. He added that the Ministry is engaging with the Automotive Assemblers Association of Ghana (AAAG), second-hand dealers, the Ministry of Finance and Ghana Revenue Authority (GRA) to develop a roadmap for the smooth implementation of the outstanding issues, "and I wish to commend our private sector partners for their continuous support."

He stated, "This move is to position Ghana to take advantage of the increasing demand for vehicles in Africa and boost local production of vehicles that will go a long way to enhance the export of vehicles to neighbouring countries within ECOWAS and across the continent.

“Africa is looking forward to doubling its current production of close to 1.5 million vehicles annually by 2030 and Ghana is looking forward to participating fully in this market. This cannot happen by chance; it would require deliberate efforts to build our capacities in the area of Components and Parts development to feed into the value chain of the automotive industry."

Mr. Kyerematen further noted that his outfit is embarking on a comprehensive supplier development programme to develop the entire automotive ecosystem through technological development, human capital and supply chains development. The programme will outline an incentive framework and regulatory regime to support the optimisation of the automotive value chain within Ghana.

The minister who is expectant of full participation of all relevant stakeholders in kick-starting the establishment of integrated automotive industry in Ghana, relying on local resources which would serve as raw materials for component manufacturing.

He hinted that a group of global vehicle components and parts manufacturing companies from South Africa, Germany, and Egypt will next month, undertake a study tour in Ghana to assess existing local capacity and initiate plans to establish strategic alliances with local private sector operators in the industry.

The new plant is expected to assemble Peugeot branded vehicles for Ghana and other West African markets.

Mr. Kyerematen pledged his sector’s commitment to addressing the teething challenges while working together with all relevant stakeholders to create an enabling environment for a successful automotive industry in Ghana.