Alan Kyerematen launches Ghana automotive development centre; inaugurates automotive council

On Thursday, January 12, 2023, the Minister for Trade and Industry, Hon Alan Kwadwo Kyerematen launched the new Ghana Automotive Development Centre and inaugurated Ghana Automotive Industry Development Council.

The council consists of 35 representatives of relevant stakeholders from both the public and private sectors aimed at:

1. To promote the harmonious and integrated development and growth of Vehicle Assembly, Automotive Components Manufacturing and their related trading activities in Ghana and externally, in collaboration with the key stakeholders in the industry.

2. To make recommendations to the government on the implementation of the Ghana Automotive Development Programme, including but not limited to the Incentive and Regulatory Framework, Access to Industrial Infrastructure, Vehicle Financing, Training, Technology Upgrading, Supplier Development, and Standards and Safety.

3. To make recommendations to the government to speed up graduation OEMs’ Assembly Plants from Semi Knocked-Down (SKD) and Enhanced Semi Knocked-Down to Complete Knocked-Down (CKD) Assembly to increase local content in Vehicle Assembly.

As part of the operationalisation of the Ghana Automotive Industry Development Council, the Ghana Automotive Development Centre has been established to serve as an Office Complex to among others host the Secretariat of the Council and provide offices for Policy Support, Vehicle Financing, Investment and Customs Facilitation, Training and Skills Development, Vehicle Testing and Certification as well as a showroom for exhibiting locally assembled vehicles.

Speaking at the inauguration in Accra, Hon. Alan Kyerematen said, the Automotive Assembly and Component Manufacturing Industry are universally recognized as a key strategic sector for stimulating economic growth and transformation, and as a powerful driver of employment, foreign investment, innovation and technology transfer.

As part of the government’s efforts to develop an integrated automotive value chain, he stated that the Ministry has drafted the Ghana Automotive Component Manufacturing Policy to provide incentives and a regulatory regime to attract component manufacturers into Ghana’s Automotive Industry whilst taking advantage of the existing resource.

"One of the components and a requirement under the Ghana Automotive Development Policy was the establishment of an Automotive Industry Development Council to among others, develop an effective economic consultation structure to effectively address any issues related to Automotive Assembly activities and to provide input into any policy review exercise", he explained.

In conclusion, the outgoing minister appealed to all players in the industry to continue to work together to promote the development and competitiveness of the players in the auto industry in Ghana and position their companies to take full advantage of the African Continental Free Trade Area (AfCFTA).

President of the Automotive Assemblers Association of Ghana Mr Jeff Oppong Peprah in his remarks commended the government for tremendous work in the automotive sector.

Adding that, the private sector will continue to work with the government and is committed to developing innovative schemes to create skilful and well-paying jobs for young men and women.

On his part, Co-chairman of the Abossey Okai Spare Parts Association, Mr Clement Boateng commended Hon. Alan Kyerematen for his efforts in the automotive industry in the country.

He said the spare parts dealers are poised to partner with foreign companies to at least, start manufacturing servicing parts in the automotive industry.

"It is against this background, we called on the government to assist us to make this dream a reality".

Background:
It would be recalled that, in 2018, the Ministry of Trade and Industry commenced the design of Ghana Automotive Development Policy aimed at making Ghana the automobile manufacturing hub in the subregion.

Subsequent to that, the ministry, in the year 2020 launched the Ghana Automotive Development Policy after a successful engagement with all relevant Stakeholders in the Industry. The Policy seeks to provide an incentive and regulatory framework to guide the development of a vibrant automotive industry in Ghana.

Under the Policy, Nine (9) auto assembly companies are producing various models of their brands using local Engineers and Technicians.