Ghana Has Signed Auto Deals with Global Carmakers Without A Policy: Isn’t it A Recipe for Disaster?

President Akufo-Addo of Ghana with Chinese leader Xi Jinping

Accra, Ghana, November 12, 2018//-Ghana’s emerging auto assembling industry has gained the attention of global carmakers from Germany, China, and Japan which thronged the West African country to sign deals with its government.

At the time of signing these deals with German car manufacturing giant, Volkswagen (VW); China’s first heavy duty truck manufacturer, Sinotruk International; and Japanese global automaker, Nissan to set up assembling auto plants locally, Ghana has no national auto policy or law in place to properly manage the promising industry.

This development made many people, including experts, economists and civil society actors to worry that Ghana would be shortchange by these global automakers which have the expertise and finances at their disposals.

Salam Abdul-Rahman, a development expert who is one of such persons is worried about the absence of auto policy and law, said: “As we speak the details of these deals signed between the Ghanaian government and the automakers are not known”.

Recipe for disaster

If you don’t know the details of something how can you hold the government accountable, he quizzed. “I see this budding auto assembling industry in Ghana as another recipe for disaster if the government doesn’t put in place the national auto policy and other regulations to safeguard it”, Mr Abdul-Rahman added.

Although the three automakers which have signed deals with the government are working feverishly to set up their plants within the next 12 months, the government is now considering plans to launch a national auto policy.

Ghana’s history in formulating national policies has not been the best. A simple policy formulation could take over five years to come into fruition. Even if it comes onboard, its implementation will be anything good to write home about.

Another issue most people have raised concerned about is the seemingly silence on local content in the deals signed so far. But the Ghana’s Minister of Trade and Industry, Alan Kyemanten assured that local content is part and parcel of the deals.

Worries of local carmaker

Kantanka Automobile Company Limited, the only indigenous automobile assembling firm in Ghana has expressed misgivings at the alacrity at which the government signed the vehicle assembling plants with the global automakers.

Officials of the Ghanaian company regretted that their numerous proposals to government have not seen such swiftness.

“We are of the view that government has hastily signed the agreements without broad stakeholder consultations,” management of Kantanka said.

“We are shocked to learn that the Ministry of Trade and Industry is part of this deal and want to question the Minister’s position in the promotion of trade and industry in Ghana vis-à-vis the local automotive industry.

But speaking recently at the Nissan and the government deal signing ceremony at the Golden Jubilee House, Mr Kyeremanten said: “The vision of the government is to diversify the country’s economic and to create jobs for the people. Thus the signing fits into this agenda.

The Managing Director of Nissan Group of Africa, Mike Whitfield who signed the MoU on behalf of the company said: “We want to build on our leadership by supporting the government to create the environment for a successful automotive manufacturing industry in the country”.

Managing Director of Nissan Group of Africa, Mike Whitfield exchanging files with Ghana’s Minister of Trade and Industry at the Golden Jubilee House, the seat of government

He continued: “Building vehicles in Ghana will enable us to further improve the products and services we offer to our customers here and will have significant, long-term benefits for the economy in terms of jobs and growth.”

Mr Whitfield also explained that the memorandum seeks to unlock economic potential, promote development of the automotive sector and promote investor-friendly regulatory frameworks that encourage sustainable car manufacturing in the West African country.

The aim is to promote infrastructure development, job creation and skills development in Ghana, Mr Whitfield added.

Industry wide vehicle sales in Ghana have been growing steadily at an annual rate of about 10% and now stand at about 9,150 vehicles a year, according to Nissan’s officials.

By Masahudu Ankiilu Kunateh, African Eye Report

 

 

 

 

 

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