Ghana imports 100,000 vehicles annually, dominated by used cars worth $1.14bn
According to a report by Deloitte, Ghana annually imports approximately 100,000 vehicles, with an overwhelming 90% being used cars, amounting to an estimated value of USD 1.14 billion.
The United States, Japan, and Germany have emerged as key suppliers in this thriving market, as revealed in the Deloitte report on Ghana’s automobile industry.
While the automobile industry currently constitutes a significant quarter of the nation’s GDP, it had been anticipated to account for an even more robust 30% share last year.
Despite these fluctuations, the Ghanaian automobile production sector has benefited from substantial government support, positioning it among the 40 fastest-growing commercial productions worldwide.
In its quest to foster local manufacturing facilities, the Government of Ghana seeks to attract investment in vehicle assembly from prominent original equipment manufacturers (OEMs) and investment partners.
In a bid to bolster domestic production and create employment opportunities within the sector, the government introduced a new policy in 2019, aiming to prohibit the importation of vehicles older than ten years. However, the implementation of this policy is currently underway, with the Finance Minister in consultation with the Minister for Trade and Industry soon to specify the final date for ceasing the importation of such vehicles.
Aligning with its pro-growth agenda, the government has further offered tax incentives to entice investment inflows into the burgeoning automobile industry.
Despite the regulatory progress and government backing, the automobile sector faces multifaceted challenges. Ghana remains committed to nurturing the industry’s potential for local manufacturing and boosting its contribution to both the economy and job market.
As the sector navigates shifting import dynamics and policy frameworks, market observers and investors keenly monitor the industry’s evolution, anticipating further developments and growth opportunities.
