Government Pushes Laws For Automotive Industry


Government is pushing for the passage of a law to facilitate the birth of the Ghana Automotive Industry.

The law which is an amendment to the Customs Act, 2015 (Act 891) will provide legal backing for the incentives that Ghanaian car manufacturers will enjoy under the Ghana Automotive Industry Policy.

The implementation of the Policy will make Ghana a fully integrated and competitive industrial hub for the Automotive Industry in the West Africa sub-region.

Ministers for Information and Trade and Industry, Kojo Oppong Nkrumah and Alan Kyerematen respectively, leading a debate on the subject in parliament on Tuesday stressed on the importance of the new laws in supporting the Automotive Industry.

Mr. Oppong Nkrumah said “the Policy is critical because, it spells out the broad framework for promoting the automotive industry in Ghana and becomes a clear blueprint for any potential investor while delivering value to them and the Ghanaian people”.

He said claims that the policy was going to effect a ban on the importation of second hand vehicles and render dealers jobless are incorrect.

The Information Minister explained that the policy was rather appropriate in checking salvage vehicles for road worthy purposes.

The Minister for Trade and Industry Alan Kyerematen said some local vehicle manufacturers in the automotive industry like Kantanka have already been engaged on how to benefit from this Policy.
He said ghanaians will have the opportunity to acquire new vehicles under this policy as their choice of preference.

“There are many benefits from this policy, it will bring Foreign Direct Investment and create diverse economic linkages” he added.

The strategic objectives of the policy to establish a fully integrated and competitive industrial hub for automotive manufacturing in collaboration with the private sector – global, regional and domestic, generate highly skilled jobs in automotive assembly and the manufacture of components and parts, with spill over effects into other sectors of the economy and to establish an asset-based vehicle financing scheme for locally manufactured vehicles to ensure affordability for vehicle buyers.

It will also improve balance of payments through competitive import substitution and export market development, improve vehicle safety and environmental standards; and to transform the quality of the national road transport fleet and safeguard the natural environment.

Some of the policy thematic areas include Incentive and Regulatory Framework Market Development and Trade Facilitation, Environment, Standards and Safety, Access to Industrial Infrastructure, Automotive Skills and Technology Upgrading, Developing Local Component Supply Chain, Labour Relations and Productivity, Legislative Measures.

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