Implementation of the Automotive Development Policy is paving the way for significant private-sector investments, says Asad Nazir, Chief Executive Officer-Silver Star Auto Limited.

With six vehicle assembly plants producing eight global brands of vehicles for the domestic, regional and continental markets, he said these investments are propelling the country to become a major player in the African automotive industry.

“I know that we are better-off than many other countries in Africa, in terms of the way policies are being implemented,” Nazir told B&FT on the side-lines of the Ghana Automotive Summit’s maiden edition, organised by the Automobile Assemblers Association of Ghana (AAAG) in Accra.

Despite challenges faced by the industry – including energy crisis, semiconductor shortage and economic challenges – he reiterated that the future remains promising: “Stability is returning, and businesses thrive on stability. Once businesses get comfortable and individuals are set, then business can grow”.

Under the theme ‘Creating a new economic backbone for Ghana and the sub-region’, the Ghana Automotive Summit provided a platform for industry professionals and experts to discuss latest trends, challenges and opportunities in the automobile industry.

Expressing pride in the progress made, Mr. Nazir emphasised that: “Today, I’m happy to say that not only are Peugeot cars being assembled in Ghana, but every car in the country is actually assembled here”.

He further commended the journey toward industrialization and Ghana’s dream, adding: “It is always a journey, and so there’s the final bit that must be implemented to really make us become very viable”.

The automotive assembly segment has attracted notable participants – including Silver Star Ghana, Volkswagen Ghana, Japan Motors, Rana Motors, Kantanka Automobile, and Stallion Group Toyota-Tsusho Company. Associate members such as Toyota Ghana and CFAO Motors Ghana have also contributed to the industry’s growth.

During the summit, K.T. Hammond – Minister of Trade and Industry, reiterated government’s commitment to providing a stable and forward-looking policy environment to foster growth of the automotive industry.

“Together, we are fully invested in the vision of developing the automotive industry; and we cannot afford to fail,” he said.

The country’s automotive market future looks promising, with projected growth from 1.3 million units in 2023 to 1.8 million units in 2028 – representing a compound annual growth rate of 6.04 percent. This growth is expected to be fuelled by supportive government incentives, urbanisation and infrastructural development across major cities.

Ghana’s Automotive Development Policy has not only attracted significant private sector investments but also enabled the country to assemble vehicles from renowned global brands. Volkswagen, Toyota, Suzuki, Nissan, Peugeot, Hyundai, Changan, KIA and Kantanka Automobile Limited are among the brands being assembled in Ghana, offering customers a wide range of options to meet their transportation needs.