The Minister of Trade, Industry, and Agribusiness, Elizabeth Ofosu-Agyare, has revealed exciting plans for the automotive industry in Ghana, particularly the development of policies to support the rise of electric vehicles (EVs) and the creation of an Automotive Component Manufacturing Development Policy. These announcements come as part of the government's ongoing commitment to enhancing the local automotive sector. During a recent tour of vehicle assembly plants in Tema, the Minister emphasised the government's dedication to adapting the existing automotive laws to better accommodate electric vehicles, e-bicycles, and e-tricycles, ensuring that these modes of transport are fully integrated into the legal framework.
According to Ofosu-Agyare, the government recognises the growing importance of electric vehicles in the global market and is taking proactive steps to ensure the country is ready for this shift. The plans include providing subsidies and tax waivers to support the growth of the e-vehicle industry. Five years ago, when the original automotive policy was drafted, electric vehicles were still a relatively new concept, but with their increasing popularity, the government has seen the need to revise policies to keep pace with innovation.
The minister's tour took her to key vehicle assembly plants in the Tema Free Zones enclave, including Japan Motors and Toyota Tsusho Manufacturing Ghana, where she was briefed on the various production lines. At Japan Motors, she inaugurated a new showroom for Foton vehicles and observed the assembly plant’s operation, including a unique water test facility. At Toyota Tsusho, she also expressed satisfaction with the production process and pledged continued government support to facilitate the growth of the local automotive industry.
Elizabeth Ofosu-Agyare's remarks highlighted the government’s long-term vision for an integrated automotive industry that leverages the country's raw materials. She stressed the importance of local component production for vehicle manufacturing and after-sales services, as well as the need for green technologies to be adopted in industrial processes. This focus on sustainable technologies aligns with global trends towards reducing carbon emissions and fostering environmentally friendly practices within the industry.
One of the key takeaways from the minister's visit was the positive impact that Ghana's automotive policies have already had in attracting global automotive brands. Major players like Volkswagen, Toyota, Suzuki, and Nissan have established assembly plants in Ghana, significantly boosting the local automotive value chain. With the government’s support for these initiatives, the sector continues to expand, generating jobs for Ghanaian youth and contributing to the development of the local economy.
However, despite these successes, challenges remain. Jeffrey James Oppong Peprah, President of the Automobile Association of Ghana and CEO of VW Ghana, noted that while vehicle assembly plants are capable of producing up to 10,000 vehicles annually, many are operating well below their capacity. He emphasised the importance of the government following through with its promises to fully implement the automotive policy, including the introduction of the Automotive Component Manufacturing Development Policy. This policy would allow Ghana to produce more vehicle components locally, utilising the country's abundant raw materials, and drive further growth in the sector.
Overall, the government's push to develop the automotive industry, particularly through the introduction of electric vehicle-friendly policies and local manufacturing initiatives, signals a promising future for the sector in Ghana. As the country positions itself as a hub for electric vehicle production in West Africa, the collaboration between the private and public sectors will play a crucial role in driving the industry forward.
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