Ghana has become a hub for innovation and economic development, with six global car assemblers setting up plants in the country. This transformation is reshaping Ghana’s automotive industry and creating new opportunities for growth and investment.
With the country placing itself as a beacon of development powered by innovation on both local and global fronts, some of the world’s automotive giants have established assembly plants with the primary aim of transforming Ghana into a hub for innovation, economic development, and a new era in transportation. According to the Ibrahim Index of African Governance, Ghana stands out as the 7th best economy in Africa.
The Ghanaian government has implemented policies to support the growth of the manufacturing industry, including tax incentives and investments in infrastructure. As a result, Ghana has become one of the 40 fastest-growing industrial production hubs globally.
The country’s strategic location and growing market demand have made it an attractive destination for foreign investors. To further drive this growth, the government has also established the Ghana Automotive Development Programme (GADP), promoting the automotive industry’s expansion.
The Automotive Sector in Ghana
The automotive sector in Ghana is predominantly composed of retailers of imported used vehicles and a few distributors dealing in new vehicles. Ghana imports about 100,000 vehicles annually, with approximately 90% being used vehicles, valued at an estimated US$1.14 billion each year. The United States, Japan, and Germany are leading suppliers.
Currently, six automobile assemblers are registered under the Ghana Automotive Development Programme (GADP): Volkswagen, Toyota, Rana Motors, Sinotruck, Japan Motors, and Kantanka.
The Six Global Car Assemblers Driving Change in Ghana
Volkswagen
Volkswagen Ghana has been assembling vehicles in Ghana since 2020 and has sold over 1,000 locally assembled cars. The company has heavily invested in the country and has established a state-of-the-art assembly plant in the Tema Free Zone area.
Volkswagen’s operations focus on assembling a range of vehicles, including the T-Cross, its smallest SUV model. The T-Cross, a subcompact crossover, is known for its surprisingly spacious interior, ample room, and standard features, making it a practical family car.
In 2020, President Nana Addo Dankwa Akufo-Addo unveiled Ghana’s inaugural Volkswagen vehicle assembled locally, marking the VW assembly plant’s establishment. The plant has the capacity to produce over 5,000 vehicles annually, creating numerous job opportunities for Ghanaians.
Toyota
Toyota Ghana has established itself as a key player in the automotive sector by building a car assembly plant. Authorized by Toyota Motors Corporation, Toyota Ghana is the exclusive distributor of Toyota vehicles, offering genuine spare parts and high-quality after-sales services.
In 2021, Toyota Ghana launched “Automark,” its certified pre-owned vehicle business unit, to simplify buying and selling used Toyota vehicles. In March 2022, the company introduced the All-New Corolla Cross, a compact yet comfortable SUV model. Toyota’s long-standing presence in Ghana has cemented its reputation for quality and customer satisfaction.
Kantanka Automobiles
Kantanka Automobiles is a local company that designs, manufactures, assembles, and sells luxury cars. Founded by Ghanaian entrepreneur Kwadwo Safo Kantanka Jnr, the company has become a significant player in the automotive industry, with vehicles renowned for their quality and style.
In 2020, the Kantanka Group was granted a license to benefit from incentives under the Ghana Automotive Manufacturing Development Policy. The company’s assembly plant produces luxury cars, such as the Kantanka Omama Pick-up.
Rana Motors
Rana Motors has become a leading player in the Ghanaian automotive market. The company recently introduced a fleet of 30 Phoenix Ashok Leyland vehicles assembled locally. In May 2023, President Nana Addo Dankwa Akufo-Addo inaugurated a modern assembly plant for Rana Motors in Amasaman, Greater Accra Region, supporting the production of KIA vehicles under the Automotive Development Policy.
Japan Motors
Japan Motors Trading Company has strengthened its position in Ghana, investing $8 million in constructing an assembly plant. With a long history in the country, the company has built a strong reputation for quality and customer satisfaction. The assembly plant produces a range of vehicles, including passenger cars and commercial vehicles.
Sinotruck
Sinotruck, a global leader in heavy-duty truck manufacturing, has brought its expertise to Ghana. The company, established in 2001, focuses on enhancing truck sales, technical services, spare parts supply, and overseas KD assembly. It has solidified its market presence in Ghana, assembling a variety of robust trucks.
With the establishment of these assembly plants, Ghana’s automotive sector is poised for tremendous growth, creating new jobs, driving economic development, and showcasing the country as a hub for innovation and manufacturing.
