The African Association of Automotive Manufacturers (AAAM), the continental body has announced that it is lending its full support to Automotive Development Policy of Ghana.
The association recently disclosed in a statement that it fully supports the government of Ghana, as it moves ahead in implementing the balance of the provisions of its progressive Automotive Development Policy. Since its initial inception, Ghana’s Auto Policy has seen various new assembly plants commence production of OEM models from VW, Toyota, Nissan and Peugeot.
This is in addition to Ghana’s own assembler, Kantanka. According to the association, three more OEMs will commence the assembling of Hyundai, Kia, and Isuzu vehicles before the end of 2022. The association said it is optimistic that one of the gains of a vibrant auto policy in Ghana is that the country would be able to transition from importing used cars to new ones that were being assembled locally.
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Working in partnership with the Ghana Ministry of Trade and Industry, AAAM in close collaboration with the leadership of the Automotive Assemblers Association of Ghana (AAAG) , has arranged a number of component study tours to Ghana. This has resulted in AAAM being able to interest several component manufacturers to consider partnerships with local companies to invest in manufacturing capacity for initially the aftermarket and then OEM components. Hence Ghana is also drafting an automotive component manufacturing policy, which will attract new investors as volumes of both OEM and aftermarket components increase for the broader region.
The automotive Industry is globally recognized as a key strategic sector for stimulating multiplier effects in terms of industrial transformation, and as a powerful driver of employment, foreign investment, innovation, and economic growth, contributing directly and indirectly to a country’s GDP and positive balance of payments.
Related: How Morocco Become a Leading Automobile Production Hub
These investments supported by global vehicle brands are pivotal considering the current automotive technology revolution and globally competitive landscape and will provide partnering opportunities for domestic investors through the automotive value chain. As demonstrated by South Africa and Morocco, progressive automotive policies that are passed into law continue to attract significant investments which result in many skilled jobs through the automotive value chain.
The CEO of AAAM, David Coffey, during its recent virtual AGM attended by its members from throughout Africa and member organizations of other countries, said:
“The government of Ghana is to be applauded for implementing the next phase of the Automotive Development Policy. The government has also committed to developing vehicle financing schemes to support the purchase of locally assembled vehicles.
A progressive automotive policy is essential for any country wishing to attract significant investment from international companies for either component or vehicle manufacturing, and Ghana was the first to do so, after the established vehicle manufacturing countries of Morocco and South Africa. Egypt have recently announced their new automotive policy and we are working with a number of other African countries to do the same.
The automotive industry is gaining traction in Africa where we will see trading of vehicles between assembly hubs across the continent with Ghana being a hub in West Africa. Ghana is on a very exciting path that will have profound economic benefits in the medium and long term.”
Recently, the Director General of the Nigeria’s National Automotive Design and Development Council (NADDC), Jelani Aliyu, disclosed that the Nigeria Automotive Industry Development Plan (NAIDP) was under review by an international firm KPMG (global network of professional firms providing Audit, Tax and Advisory services) with support from African Association of Automotive Manufacturers.
Related: Nigerian Auto Policy Attracted $1.5 Billion Investments
Aliyu, who was on a mission in Japan to woo the country’s auto makers to invest in Nigeria, had assured his hosts of an improved environment, because apart from other favorable factors, the NADDC had engaged the assistance of the renowned international firm to update the Nigeria Automotive Industry Development Plan (NAIDP) so as to effectively drive the development of Nigeria’s auto industry.
Source: Sun News
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