The second Ghana Automotive Summit, themed “Towards the Future of Mobility,” is scheduled for June 3, 2025, in Accra. Launched this week, the summit will spotlight the progress of Ghana’s growing automotive industry. It will highlight milestones in local assembly, brand expansion, and job creation through industrialization.
However, the summit also comes at a moment of reflection. Despite growth, several challenges still hold the industry back. Low consumer demand, policy inconsistency, and heavy competition from used vehicle imports threaten its long-term success. Addressing these bottlenecks is critical to achieving sustainable growth.
Ghana’s industrialization plan is anchored by the Ghana Automotive Development Policy (GADP), a key part of the Ghana Manufacturing Development Programme. These policies aim to attract vehicle assemblers and lay the foundation for a competitive local industry. The Customs (Amendment) Act, 2020, which bans salvaged and over-aged vehicle imports, was designed to reduce secondhand car dominance and boost local demand.
Yet, beneath the strong policy framework, real challenges remain. Although assembly plants are operational, few Ghanaians buy the vehicles. Dr. Issaka Lawerh Tetteh notes that affordability is a major issue. Many citizens simply cannot afford locally assembled cars. Asset-based financing and tax incentives were promised but have either been delayed or ineffective.
The 2020 import ban faced uneven enforcement and strong resistance, especially from spare parts dealers in Abossey Okai and Suame Magazine. President Mahama’s pledge to repeal the ban sends mixed signals. Without protective alternatives, lifting the ban could hurt local assemblers who rely on market control to stay competitive.
Imported used vehicles still dominate the market. Over 70% of cars entering Ghana each year are secondhand, many salvaged. These cars are cheap and accessible. Weak enforcement on emissions and roadworthiness further tilts the market in favor of imports.
Key Recommendations
To make Ghana’s automotive industrialization strategy work, IMANI proposes the following:
Stimulate Demand
Local demand must grow. Without a strong customer base, assembly plants will stay underused. Expanding vehicle financing can help. Making loans more accessible will allow more Ghanaians to buy new vehicles.
Ensure Policy Clarity
The industry needs consistent, reliable policies. Uncertainty discourages investment. If the government reviews the import ban, it must replace it with clear, enforceable regulations. This includes setting age and emissions limits for used vehicles to balance market needs with industrial goals.
Invest in Skills
A strong auto sector needs more than just assembly lines. Ghana must build a skilled workforce, engineers, technicians, and parts makers. Without them, the country will remain stuck in low-value assembly. Tailored vocational and engineering programs can bridge the skills gap.
Lead by Example
Government agencies should prioritize buying locally assembled cars. This would show public support and help generate the scale needed to sustain production.
The upcoming summit offers a chance to reflect and plan. Progress has been made, but real growth requires deeper reform. The future of Ghana’s auto industry depends not just on global assemblers, but on bold, local action to drive demand, clarify policies, grow skills, and deepen industry value.
