Economist at the University of Ghana, Prof. Ebo Turkson, is calling for stronger government intervention to boost demand for locally assembled vehicles, including a mandatory procurement policy for state agencies and incentives for private consumers.
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,” he said Ghana’s automotive industry can only become competitive if demand is deliberately strengthened through policy support.
He argued that government procurement of vehicles should prioritise locally assembled cars, describing it as a practical step that could immediately stimulate production and reduce unit costs for manufacturers.
“We need to enforce procurement of cars. No state agency should import any car if they don’t buy from local assemblers,” he said.
According to him, higher demand would allow assembly plants to operate at scale, reducing production costs and improving competitiveness over time.
He explained that underutilisation of capacity remains a key challenge for the sector, but noted that increased output would naturally lower costs per unit, making locally assembled vehicles more affordable.
“When you produce more output, the cost per unit reduces and then you become competitive,” he stated.
Prof. Turkson also proposed consumer-focused incentives, including tax reliefs and subsidies, to encourage individuals to purchase locally assembled vehicles.
He suggested measures such as a five percent government-backed discount or full VAT exemptions on locally assembled cars as possible options to stimulate demand.
“Give incentives for consumers to go and buy made-in-Ghana cars. For anybody who buys a car in Ghana, the government can pay a 5 percent discount or remove VAT,” he said.
He maintained that combining public procurement rules with consumer incentives would create sustained demand, helping Ghana’s automotive industry scale up and become more competitive.
