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01.09.2004 Business & Finance

Chinese companies to establish automobile assembling plant in Ghana

By GNA

Accra, Sept. 1, GNA - Four Chinese companies have declared their willingness to establish an automobile assembling plant in Ghana. The Great Wall Automobile Holding Company, Dong Feng Motor Industries, Chery Automobile and FYM Motorcycles would also provide expertise in the area of automobile information technology.

Mr David B. Ansah, Managing Director of Sneda Motors Limited of Ghana and local representative of the companies, who disclosed this to newsmen in Accra, said the four companies have already introduced a number of vehicles to the Ghanaian market.

These include: trucks, Fym Motorcycles, Chery saloon cars, pick-ups and station wagons.

He said the entrepreneurs, were encouraged by the crave of Ghanaians for Chinese vehicles which are relatively cheaper, durable and compact for the local terrain.

Mr Ansah said the visit by President John Agyekum Kufuor to China in 2002, had facilitated bilateral trade.

He said Sneda was established to foster automobile trade links between Ghana and China and to explore the West African sub-regional market of about 250 million people.

Mr Ansah said although the trans national corporations could inject the needed capital into national economies, host countries should guard against negative resource flows, through cumulative impact of repatriation of dividends, profits, fees, royalties and other out-goings.

"In our attempts to induce investment and technology flows from the industrialised world, we must understand that transactions with foreign companies are essentially business arrangements predicated on hard bargaining and sophisticated negotiations." Mr Ansah expressed the need for a stable democratic environment, to allow for economic growth, to boost efforts by the private sector to tap domestic and foreign investments for rapid socio-economic development.

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