Ghanaian automobile industry

Let’s explore the fascinating world of the Ghanaian automobile industry.

1. Market Size and Growth:
• The Ghana Automobile Market was estimated to be USD 1.93 billion in 2024 and is projected to reach USD 2.07 billion by 2029. The growth rate during this period is expected to be less than 1.5%.
• In 2021, the overall automobile industry in Ghana was valued at a substantial $4.6 billion, and it is anticipated to further expand, reaching $10.64 billion by 2027.
2. Composition of the Industry:
• The Ghanaian automotive sector comprises:
• Local and International Assemblers: These entities are involved in assembling vehicles.
• Distributors of New Vehicles: This includes American vehicles.
• Retailers of Imported Used Vehicles: Approximately 90% of the vehicles imported into Ghana are used.
• The leading suppliers of vehicles to Ghana are the United States, Japan, and Germany.
3. Initiatives and Trends:
• “Made in Ghana” Vehicles: The Kantaka Group initiated the production of locally assembled vehicles in 2016. This effort aims to promote domestically manufactured cars.
• Import Restrictions: Ghana has prohibited the import of vehicles older than ten years. This move encourages automakers to establish factories within the country.
• Growing Skilled Workforce: The Ghanaian automotive industry benefits from an increasing pool of skilled workers.
• Foreign Presence: Companies like Volkswagen, Nissan, Toyota, Suzuki, and Renault have a significant presence in Ghana.
• Electric Buses: Ghana plans to introduce 1,000 electric buses for intra-city and intercity transportation services. By 2050, the goal is to have 12,027 electric public buses operational nationwide.
4. Vision for the Future:
• Ghana aspires to become a car manufacturing hub for West Africa, a region with a population of over 380 million people.
• Carmakers entering Ghana must consider offering car loan services, as car loans are currently uncommon in Africa.
• The government aims to assemble 500 Complete Built Unit (CBU) electric buses and 500 Semi-Knocked-Down (SKD) buses in collaboration with local assemblers, fostering a productive partnership on Ghanaian soil.

In summary, Ghana’s automotive industry is on a growth trajectory, driven by local initiatives, import regulations, and the vision to become a regional manufacturing hub