The Chief Executive Officer of Volkswagen Ghana, Mr. Jeffery Oppong Peprah, has urged the Bank of Ghana to support key players in the automobile industry by introducing incentivised loan schemes for the purchase of locally assembled vehicles.
Speaking at the launch of Volkswagen’s new product in Accra on November 28, 2024, Mr. Peprah emphasised that reducing interest rates on car loans could make locally assembled vehicles more accessible.
“Currently, when you go for a loan, you are paying about 30% interest rates, which is not affordable. We are appealing to the Bank of Ghana to implement a special incentive rate for locally assembled vehicles,” he stated.
Car loan interest rates in Ghana are currently between 25% and 35%, significantly higher than in countries like South Africa, where rates typically range from 10% to 15%.
Mr. Peprah believes that lower rates would encourage Ghanaians to purchase locally assembled vehicles, benefiting the economy.
He also expressed support for Dr. Mahamudu Bawumia’s proposed credit scoring system, which he believes would allow locally assembling car companies to offer flexible payment plans.
This system, according to Mr. Peprah, would help assess buyers’ creditworthiness and facilitate salary deductions for loan repayments, enabling more individuals to afford new vehicles.
In addition, Mr. Peprah highlighted the importance of integrating Ghana’s informal sector into the automobile industry to address the skills gap and improve industry standards.
The event featured the launch of the Volkswagen Amarok, a vehicle designed for Ghana’s terrain, offering enhanced safety, power, and comfort tailored to local needs.
Key industry stakeholders attended the launch to review the new product’s features and discuss its potential impact on the market.