The second edition of the Ghana Automotive Summit, with its focus on the future of mobility, highlights Ghana’s ambition to cultivate a thriving automotive sector. However, as the nation seeks to accelerate its automotive industrialization strategy, significant hurdles remain. Insights from IMANI, a leading think tank, suggest that while the Ghana Automotive Development Policy (GADP) and the Customs (Amendment) Act, 2020, were designed to boost local assembly, their effectiveness is hampered by challenges like insufficient demand and policy inconsistencies. Overcoming these obstacles is paramount to unlocking the sector’s full potential and ensuring the summit’s discussions translate into tangible progress for the Ghana automotive industry.

For Ghana’s automotive vision to materialize, it must confront the reality that locally assembled cars struggle to gain traction among Ghanaian consumers. Affordability, as Dr. Issaka Lawerh Tetteh emphasized, is a key factor. “Affordability is a major constraint: many Ghanaians cannot afford new locally assembled cars,” he stated, underscoring the economic barriers that limit local patronage.

Beyond affordability, the envisioned asset-based vehicle financing and tax reliefs promised by the Ghana Automotive Development Policy have been slow to materialize, or haven’t packed the punch needed to make locally assembled vehicles more attractive. The Customs (Amendment) Act, 2020, intended to protect local assemblers, has faced opposition and uneven enforcement, creating an uncertain environment. Adding to this complexity, President Mahama’s pledge to review and potentially repeal the ban on salvaged vehicle imports introduces further instability, sending mixed signals to investors and consumers alike. The dominance of used vehicle imports, accounting for over 70% of the market, continues to cast a long shadow over the competitiveness of locally assembled vehicles. The Ghana automotive industry is at a crossroads.

To truly stimulate demand for locally assembled vehicles, Ghana needs a multi-pronged approach, starting with making these vehicles more financially accessible. Accessible vehicle financing schemes, specifically tailored for locally assembled cars, are crucial to alleviate the affordability barrier. Interventions that directly translate interest into purchases are also necessary; moving beyond mere expressions of interest to actual sales is key. Consider a comparison table showcasing the total cost of ownership, including financing, insurance, and maintenance, between locally assembled and imported used vehicles, which would provide consumers with a clear financial picture. The total cost of ownership is a critical component in determining the Ghana automotive industry’s future.

Policy clarity and consistency are vital for fostering a stable and attractive investment climate. Manufacturers require confidence in the long-term stability of protections and incentives to justify significant investments. Any review of the Customs (Amendment) Act, 2020, must be carefully managed, balancing the goals of industrialization with the realities of the informal vehicle economy. If the ban on salvaged vehicle imports is lifted, it should be replaced with regulations that discourage the import of unsafe or highly polluting vehicles and impose age limits. Policy instability can stall the Ghana automotive industry’s progress.

The long-term success of Ghana’s automotive industry depends on a skilled workforce. Investment in tailored vocational training programs for technicians is essential to support the assembly, maintenance, and repair of vehicles. Simultaneously, investment in automotive engineering programs is needed to build a pipeline of skilled engineers who can drive innovation and technological advancement within the industry. Growing local parts manufacturing capacity to increase local value added is another critical element. Skills development, thus, should be prioritized for the Ghana automotive industry.

Government institutions should lead by example, prioritizing the procurement of locally assembled vehicles to demonstrate confidence in the policy and provide a guaranteed market for local assemblers. This public procurement strategy can help sustain production lines, encourage further investment, and demonstrate the government’s commitment to the Ghana automotive industry’s success. By choosing locally assembled cars, the government can drive real change.

The Ghana Automotive Summit presents an opportunity to celebrate achievements, but true progress hinges on tackling the fundamental challenges that impede the growth of the local automotive sector. Stimulating demand, ensuring policy clarity, developing skills, and strategically leveraging public procurement are essential steps. Without concrete action in these areas, the summit risks becoming a mere formality. The future of Ghana’s automotive industry relies on tangible steps to cultivate a vibrant and competitive ecosystem. The Ghana automotive industry’s future is bright, but only with strategic effort.