The African Association of Automotive Manufacturers (AAAM) fully supports the Government of Ghana, as it moves ahead in implementing the balance of the provisions of its progressive Automotive Development Policy, which since its initial inception has seen three new assembly plants commence production of OEM models from VW, Toyota, Nissan and Peugeot. This is in addition to Ghana’s own assembler, Kantanka, Before the end of 2022 three more OEMs will commence the assembling of Hyundai, Kia and Isuzuvehicles.
Working in partnership with the Ghana Ministry of Trade and Industry, AAAM in close collaboration with the leadership of the Automotive Assemblers Association of Ghana (AAAG) , have arranged a number of component study tours to Ghana. This has resulted in AAAM being able to interest several component manufacturers to consider partnerships with local companies to invest in manufacturing capacity for initially the aftermarket and then OEM components. Hence Ghana is also drafting an automotive component manufacturing policy. This will attract new investors as volumes of both OEM and aftermarket components increase for the broader region.
The Automotive Industry is globally recognized as a key strategic sector for stimulating multiplier effects in terms of industrial transformation, and as a powerful driver of employment, foreign investment, innovation, and economic growth, contributing directly and indirectly to a country’s GDP and positive balance of payments
These assembly investments supported by global vehicle brands are key considering the current automotive technology revolution and globally competitive landscape and will provide partnering opportunities for domestic investors through the automotive value chain.
As demonstrated by South Africa and Morocco, progressive automotive policies that are passed into law continue to attract significant investments which result in many skilled jobs through the automotive value chain. As time progresses Ghana will be able to transition from importing used cars to used cars that were assembled locally and that attract affordable vehicle finance. The used car industry is a fundamental part of an automotive eco system – it’s merely the source that changes over time
“The government of Ghana is to be applauded for implementing the next phase of the Automotive Development Policy. The government has also committed to developing vehicle financing schemes to support the purchase of locally assembled vehicles”, said the CEO of AAAM during its recent virtual AGM attended by its members from throughout Africa and member organisations of other countries
“A progressive automotive policy is essential for any country wishing to attract significant investment from international companies for either component or vehicle manufacturing, and Ghana was the first to do so, after the established vehicle manufacturing countries of Morocco and South Africa. Egypt has recently announced their new automotive policy and we are working with a number of other African countries to do the same. The automotive industry is gaining traction in Africa where we will see trading of vehicles between assembly hubs across the continent with Ghana being a hub in West Africa. Ghana is on a very exciting path that will have profound economic benefits in the medium and long term”, concluded Coffey