The Government of Ghana, as part of its transformational agenda has identified Vehicle Assembly and Automotive Components Manufacturing as a strategic anchor industry to be facilitated and supported as part of the Ten Point Plan for industrial development.
As a result of this positive signal, Ghana is attracting investment in vehicle assembly from leading Original Equipment Manufacturers (OEMs) and investment partners, with positive projections of spill-overs into local manufacturing.
The vision of Government for the implementation of the Ghana Automotive Development Policy (GADP) is to make Ghana a fully integrated and competitive industrial hub for the Automotive Industry in the West Africa sub-region.
SCOPE OF THE POLICY
The initial scope of the Ghana Automotive Development Policy (hereafter referred to as “the Auto Policy”) is to provide the necessary framework to establish assembly and manufacturing capacity in Ghana. The initial coverage of vehicles to be assembled under the policy includes new passenger cars, SUVs and light commercial vehicles which would include pickups, minibuses and cargo vans. Additional policy interventions will be introduced in the course of implementation for assembling medium and heavy-duty commercial vehicles, and for the assembly of buses. For the purpose of policy implementation and effective regulation of incentives, Ghana has categorized auto assembly into Semi-Knocked-Down (SKD), Enhanced SKD and Completely-Knocked-Down (CKD), based on the qualifying list of local or foreign assembly, and Fully-Built- Units (FBUs). Each category is defined according to place of assembly or manufacture.
The strategic objectives of the Ghana Automotive Development Policy are:
- To establish a fully integrated and competitive industrial hub for automotive manufacturing in collaboration with the private sector – global, regional and domestic;
- To generate highly skilled jobs in automotive assembly and the manufacture of components and parts, with spill over effects into other sectors of the economy;
- To establish an asset-based vehicle financing scheme for locally manufactured vehicles to ensure affordability for vehicle buyers;
- To improve balance of payments through competitive import substitution and export market development;
- To improve vehicle safety and environmental standards; and
- To transform the quality of the national road transport fleet and safeguard the natural environment.
POLICY THEMATIC AREAS
- Incentive and Regulatory Framework
- Market Development and Trade Facilitation
- Environment, Standards and Safety
- Access to Industrial Infrastructure
- TAutomotive Skills and Technology Upgrading
- Developing Local Component Supply Chain
- Labour Relations and Productivity
- Legislative Measures
- Participation in the Auto Programme
- Institutional and Governance Structures