An Economist at the University of Ghana, Prof. Ebo Turkson, has called for improvements in Ghana’s business environment and infrastructure to support the growth of the country’s automotive assembly industry.
Speaking at the Citi Business Festival Roundtable on Thursday, June 25, on the theme “Driving Ghana Forward: The State of the Automotive Assembly Industry and its Contribution to the Economy,” Prof. Turkson said building a competitive automotive industry requires more than policy interventions and tax incentives.
According to him, Ghana must address a range of structural challenges affecting both the supply and demand sides of the industry if it hopes to become a competitive automotive hub.
“There is a whole system in place that we need to overcome to get us to the point where we are looking at building a competitive hub for the automotive industry from both the supply and demand point of view,” he said.
Prof. Turkson identified infrastructure as a critical factor, stressing that reliable services and lower operating costs are essential for attracting investment and supporting manufacturers.
“Infrastructure is key in all of these. The cost of electricity and the business environment should be very conducive,” he noted.
He argued that creating a low-cost and business-friendly environment would be more beneficial to investors than offering special incentives.
“If your environment is conducive and the cost of doing business is very low, you don’t need to give private businessmen private incentives because they will make more profit in a low-cost environment than the tax incentives that you give them,” he stated.
Prof. Turkson’s comments come amid ongoing discussions about how Ghana can strengthen its automotive assembly industry and position itself as a major manufacturing hub within the region.
Industry players have consistently highlighted the need for stable policies, improved infrastructure, affordable energy, and a favourable business climate to drive the sector’s long-term growth.
