African Automakers Support Ghana Automobile Policy


By Moses Akaigwe

As Automotive industry players in Nigeria await the outcome of the ongoing review of the Nigeria Automotive Industry Development Plan (NAIDP) by KPMG with the support of the African Automobile Manufacturers Association (AAAM), l continental body announced that it fully supports the automobile development policy

The AAAM is working with KPMG on the Nigeria Automotive Policy Review, which the Managing Director of the National Automotive Design and Development Council (NADDC) of Nigeria, Jelani Aliyu, has recorded with encouraging success.

The association recently revealed in a statement that it fully supports the Government of Ghana as it moves ahead with the implementation of the remaining provisions of its progressive automotive development policy.

Since its inception, Ghana’s automotive development policy has seen three new assembly plants start production of OEM models from VW, Toyota, Nissan and Peugeot.

This is in addition to Ghana’s own assembler, Kantanka,

He noted that before the end of 2022, three more OEMs will start assembling Hyundai, Kia and Isuzu vehicles.

The association expressed optimism that one of the benefits of a strong automobile policy in Ghana is that the country would be able to shift from importing used cars to assembled used cars locally.

Working in partnership with the Ghanaian Ministry of Commerce and Industry, the AAAM, in close collaboration with the leadership of the Association of Automotive Assemblers of Ghana (AAAG), has organized a number of study tours on components in Ghana.

This has allowed AAAM to be able to interest several component manufacturers to consider partnering with local companies to invest in manufacturing capabilities for aftermarket components first and then OEM components.

Hence, Ghana is also developing an automotive component manufacturing policy. This will attract new investors as volumes of OEM and aftermarket components increase for the region as a whole.

The automotive industry is globally recognized as a key strategic sector to stimulate multiplier effects in terms of industrial transformation, and as a powerful engine of employment, foreign investment, innovation and economic growth, contributing directly and indirectly to the GDP of a country and a positive balance of Payments

These assembly investments backed by global vehicle brands are critical given the current automotive technology revolution and global competitive landscape and will provide partnership opportunities for domestic investors across the automotive value chain.

As South Africa and Morocco have demonstrated, the progressive automotive policies that are enacted continue to attract significant investment that results in many skilled jobs throughout the automotive value chain.

Over time, Ghana will be able to shift from importing used cars to used cars that have been assembled locally and attract affordable car financing. The used car industry is a fundamental part of an automotive ecosystem – it’s just the source that changes over time

“The Government of Ghana is to be applauded for implementing the next phase of automotive development policy. The government is also committed to developing vehicle finance programs to support the purchase of locally assembled vehicles,” AAAM CEO David Coffey said at his recent virtual AGM attended by its members. from all over Africa and member organizations from other countries.

Coffey further remarked: “A progressive automobile policy is essential for any country wishing to attract significant investment from international companies for the manufacture of components or vehicles, and Ghana has been the first to do so, after the manufacturing countries of established vehicles such as Morocco and South Africa. Egypt recently announced its new car policy and we are working with a number of other African countries to do the same.

“The automotive industry is gaining momentum in Africa where we will see exchanges of vehicles between assembly centers across the continent with Ghana being a hub in West Africa. Ghana is on a very exciting path which will have profound economic benefits in the medium and long term.

Recently, NADDC Managing Director Jelani Aliyu disclosed that the Nigeria Automotive Industry Development Plan (NAIDP) is being reviewed by an international company, KPMG.

Aliyu, who was on a mission to Japan to entice the country’s automakers to invest in Nigeria, had assured his hosts of an improved environment, as apart from other favorable factors, the NADDC had engaged the assistance of the renowned international firm to update the Nigerian Automotive Industry Development Plan (NAIDP) to effectively stimulate the development of the Nigerian automotive industry.

The NADDC CEO also informed Japanese automakers that KPMG has good support from the African Automobile Manufacturers Association headed by David Coffey.


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