In a recent address to artisans, auto workers, and traders at Techiman Magazine in the Bono Region, John Mahama, the 2024 presidential candidate for the National Democratic Congress (NDC), pledged to eliminate the ban on import of used vehicles.
Mahama emphasized the financial challenges faced by many Ghanaians in affording brand new vehicles manufactured in the country.
To address this, he proposed striking a balance by lifting the ban on used vehicle imports. Additionally, Mahama suggested that the government could contribute to the growth of the local auto industry by becoming a customer and purchasing some of the cars assembled brand new in Ghana.
“There are vehicle assembly plants owned by foreigners with the goal of assembling vehicle parts and selling brand-new cars to Ghanaians. The affordability of these new cars is a challenge for many Ghanaians; the government should play a role in addressing this issue by purchasing a significant portion of these locally assembled cars.” he said.
“Given the substantial demand for vehicles in the government sector, such a move could contribute to the profitability of these companies. Recognizing the financial constraints faced by ordinary Ghanaians in affording new cars, the NDC plans to eliminate the proposed ban on the importation of used vehicles,” John Dramani Mahama added.
To incentivize international companies like Volkswagen AG and Nissan Motor Co. to establish local plants in Ghana, the country has implemented a ban on the importation of cars older than 10 years. This regulatory measure, outlined in an act of parliament, also includes import-duty rebates for companies engaged in the local manufacturing or assembly of cars.
Automakers such as Volkswagen, Nissan, Toyota Motor Corp., Suzuki Motor Corp., and Renault SA have responded to this initiative by establishing local assembly operations in Ghana. The country aims to position itself as a prominent car-manufacturing hub for West Africa, a region boasting a population of over 380 million people.
Volkswagen and Nissan, in particular, are actively pursuing the African market, recognizing the potential for growth in a region where car loans are not readily available.