The African Association of Automotive Manufacturers (AAAM) in March hosted an exploratory visit by automotive component manufacturers to Ghana.
The AAAM says the objective was to introduce potential investors to the Ghanaian automotive market.
The visit was focused on aftermarket opportunities, which, in time, should also support vehicle assembly as this volume grows, as currently almost all components are imported, the association notes.
Executives from Maxe (a division of KAP Automotive), Supreme Springs (a division of Metair) and Hudson Rubber were involved in a week of back-to-back engagements with vehicle assemblers, local manufacturers, vehicle dealers,
and spare parts importers, as well as the Ghana Standards Authority and the African Continental Free Trade Area (AfCFTA) Secretariat.
A particularly important aspect of the newly drafted Ghana Automotive Development Policy is to develop auto component manufacturing with local partners, says the AAAM.
“In a positive meeting with Minister [of Trade and Industry Alan] Kyerematen on the last day of the visit, the Minister emphasised the significance of this initiative and the government's willingness to engage on competitive fiscal incentives for those component manufacturers wanting to invest in Ghana.”
Minister Kyerematen indicated that the potential take-off of a component manufacturing industry would provide strategic guidelines for the development of steel, aluminum, and rubber industries in the country.
“This is the first of many visits planned by the AAAM office in Accra in
support of developing the automotive industry in Ghana,” says AAAM CEO David Coffey.
“It was most encouraging to witness the positive interaction between potential investors, local companies and the willing support offered by the Ghanaian authorities.