An Economist at the University of Ghana, Prof. Ebo Turkson, says Ghana’s automotive assembly industry could significantly reduce the country’s import bill and expand jobs across multiple sectors if stronger incentives are introduced to boost demand and support related industries.
Speaking at the Citi Business Festival 2026 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 Ghana’s industrialisation drive is aimed at cutting dependence on imported vehicles, but current market conditions are limiting the impact of the policy.
According to him, Ghana continues to spend heavily on vehicle imports, creating a major opportunity for local manufacturers if demand is redirected.
“In 2025, we imported close to three billion dollars of used cars and new cars into this country,” he said.
He argued that even partial substitution of imports with locally assembled vehicles would create a strong domestic industry with wide economic benefits.
“Supposing half of it is produced here, that is 1.5 billion dollars in industry for these six companies,” he noted.
Prof. Turkson stressed that the real challenge is not capacity, but underutilisation of existing assembly plants, which are currently operating below optimal levels.
“They have the capacity. They are producing at very low capacity,” he said.
He explained that increasing production and demand would not only benefit car manufacturers but also stimulate growth in related sectors such as logistics, transport services, vehicle dealerships, insurance, banking, and auto repair businesses.
“When they produce at even optimal capacity, it will generate a lot of output of cars in Ghana and then the allied industries will benefit from it,” he stated.
Prof. Turkson called for a broader incentive framework that goes beyond manufacturers to include supporting industries, arguing that this would help unlock investment and accelerate the sector’s growth.
“What we need to also do is to provide an incentive structure not only for those who are selling their cars but for these allied industries to get investment to kick into that,” he said.
He maintained that strengthening the automotive value chain is central to Ghana’s industrialisation agenda and long-term economic transformation, particularly in reducing foreign exchange pressure from vehicle imports.
