The government is making a strong case for the passage of a law that will formally create an automotive industry in the country.
The law comes in as an amendment to the Customs Act, 2015 (Act 891) which provides some incentives to Ghanaian car manufacturers through the Ghana Automotive Industry Policy.
According to the government, the move is aimed at making Ghana the hub for Automotive Industry in the West African sub-region.
The Minister for Trade and Industry, Alan Kyeremateng and the Minister for Information, Kojo Oppong Nkrumah who led the debate in Parliament on Tuesday to push for the new laws stressed that it was important for a framework to be developed to support the creation of the new industry.
They argued that the country stands to make several gains including in various areas including its finances with the new law if approved by Parliament.
The Information Minister 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”.
As part of amendments being sought by the government are moves to stop the importation of salvaged cars, otherwise known as accident cars, as well as vehicles of age more than 10 years.
Some have already argued that if such a measure is approved, many people especially dealers in used cars may end up being unemployed.
The Member of Parliament for Tamale Central, Inusah Fuseini, while contributing to the debate said he believed the many car garage operators in the country will be thrown out of the business and the government cannot claim that the amendments will rather create jobs but the Ofoase Ayirebi MP said such claims are “incorrect.”He said the policy was rather appropriate in checking salvage vehicles for their roadworthiness and ensure that other road users are not endangered by their presence on the road.
Alan Kyerematen also 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.
He stressed that the government is looking to establish the industry through collaboration with the private sector – global, regional and domestic, and also ensure that more jobs are created in the areas of automotive assembly and the manufacture of components and parts, with several positive spillover effects into other sectors of the economy.
The Minister added that the advent of the industry will also help to establish an asset-based vehicle financing scheme for locally manufactured vehicles to ensure affordability for vehicle buyers while improving vehicle safety and environmental standards to transform the quality of the national road transport fleet and safeguard the natural environment.
