Ghana Risks Losing Auto Investment to Côte d’Ivoire Without Clear Policy – AAAG Boss

Mr. Jeffrey Oppong Peprah, Chief Executive Officer of Volkswagen Ghana and President of the Automobile Assemblers Association of Ghana (AAAG), has made an appeal to the government to urgently pass the country’s long-awaited automotive component policy, warning that continued delays risk derailing Ghana’s ambitions of becoming a regional manufacturing hub.

Speaking during a high-level panel at the Intra-African Trade Fair (IATE), Mr. Peprah stressed that automotive component manufacturing is the real engine behind industrial transformation, far beyond the economic benefits of vehicle assembly alone.

He explained that the sub-sector covering the production of essential parts such as engines, batteries, lighting systems, electronics, interior fittings, and underbody structures is where genuine industrial value is created. 

According to him, component production has the potential to generate up to seven times more employment than assembly plants and should therefore be at the heart of Ghana’s automotive strategy.

He said “component manufacturing is the game-changer. It is where real industrialisation happens, adding that swift policy action is needed to unlock Ghana’s potential in this space”.

Mr. Peprah disclosed that the Ministry of Trade and Industry, in collaboration with AAAG and other stakeholders, has developed a draft automotive component policy. However, the policy is still under Cabinet review and has not yet been passed into law. 

He cautioned that this delay could result in lost investor interest and diminish Ghana’s strategic positioning within the West African market.

“Original Equipment Manufacturers are showing strong interest in Ghana’s component sector, but they are waiting for clear policy direction. If we don’t move fast, countries like Côte d’Ivoire could overtake us and shift investor momentum in their favour,” he warned.

The policy is a central pillar of Ghana’s broader industrial development agenda. It is intended to attract foreign and local investment, boost job creation, and integrate domestic companies into regional and global automotive value chains. 

The framework includes tax incentives, infrastructure support, and regulatory clarity to encourage component manufacturing within the country.

Mr. Peprah also highlighted that the AAAG is currently engaging the African Export-Import Bank (Afreximbank) to secure financing solutions that would reduce vehicle prices and improve access for consumers. 

He noted that with appropriate financial backing, local car purchases could be facilitated through mortgage-style payment schemes, significantly expanding domestic demand for locally assembled vehicles.

He said Ghana’s ambition to lead West Africa’s auto industry is under threat as policy delays stall investor confidence, hence industry leaders urge swift action to implement the automotive component policy and secure competitiveness.

He further noted that the policy, once passed, would allow Volkswagen’s global component partners to establish manufacturing operations in Ghana. These facilities would not only serve the local market but also supply the wider ECOWAS region, creating an export-oriented base that aligns with Ghana’s AfCFTA goals.

“With the level of investment ready and the capacity of our global partners, Ghana has a genuine opportunity to become a leading component manufacturing base for the sub-region and beyond,” he said.

Mr. Peprah emphasized that while vehicle assembly is a strong starting point, it is the establishment of a robust parts manufacturing sector that will bring about lasting economic transformation. 

He called on policymakers to treat the policy as a national priority and pass it without further delay.

“Ghana cannot afford to lose its early momentum in this sector. The window of opportunity is narrowing, and we must act decisively to secure our place as a regional leader,” he said.

With regional competition intensifying and investor interest rising, the successful implementation of the automotive component policy could determine whether Ghana becomes a continental powerhouse in automotive manufacturing or watches others seize the advantage.

Read More