Skills Gaps and High Financing Costs Constrain Ghana’s EV Industry Expansion
Ghana’s electric vehicle (EV) industry remains heavily reliant on assembly rather than full-scale manufacturing, undermining efforts to build a robust domestic value chain, a Lecturer at Kumasi Technical University, Dr Lewis Abedi Asante, has observed.
Speaking on the sidelines of a validation workshop organised by the Centre for Extractives and Development Africa, Dr Asante noted that while some EV manufacturers exist in Ghana, the bulk of components used in electric two- and three-wheelers are imported, with local firms largely engaged in assembling rather than end-to-end production.
“A lot of what we see in Ghana is assembly. We have not really been involved in direct manufacturing where everything is produced locally,” he stated, adding that this partly explains Ghana’s low manufacturing readiness score in the EV space.
He stressed that transitioning to full-scale manufacturing would be critical to expanding the EV industry, as it would stimulate the growth of supporting industries and deepen industrialisation.
According to him, attracting investment into the sector remains crucial, particularly given the risk considerations of financiers. He pointed to existing funding support by institutions such as the African Development Bank and the World Bank in related sectors, urging similar financing interventions for the EV market.
Dr Asante further advocated for targeted financing schemes, including concessional loan packages for EV purchases, arguing that lower interest rates compared to conventional vehicle loans could drive adoption.
“If we have a targeted programme where EV loans attract significantly lower interest rates, we will see increased demand and participation in the sector,” he explained.
He also cautioned against replicating Ghana’s longstanding dependence on vehicle imports, particularly second-hand vehicles, noting that such a model does little to support domestic economic growth.
“We want to be part of the production chain, not just importers. Manufacturing will generate employment and support economic development, especially in the face of rising youth unemployment,” he added.
On skills development, Dr Asante highlighted critical gaps across the EV value chain, particularly in areas such as computer-aided design (CAD), chassis development, and mechatronics—an interdisciplinary field combining electrical and mechanical engineering.
He noted that Ghana’s transition to EVs must be supported by improvements in human capital, including upskilling both formal and informal sector mechanics to handle EV maintenance and repairs.
“There will come a time when EVs dominate the market, and only those with the right technical expertise can service them. Without the necessary skills, many workers risk being left behind,” he cautioned.
Dr Asante also underscored the need to address gender disparities within the sector, advocating increased female participation in engineering and STEM-related fields.
He cited ongoing initiatives at Kumasi Technical University aimed at encouraging more women to transition into engineering programmes, particularly through pre-engineering pathways.
The workshop, he noted, sought to assess Ghana’s readiness in terms of skills required to support the transition to electric two- and three-wheelers, with findings pointing to the need for a more holistic approach that goes beyond assembly to full-scale industrial participation.
