Domestic automotive industry projected to reach US$11bn by 2028

On March 20, 2024, 8:28 AM

The domestic automotive sector is projected to reach a value of US$11billion by 2028 at a compound annual growth rate (CAGR) of 11 percent.

The bullish projection by the Ghana Jobs and Economic Transformation (JET) follows the entry of some of the industry’s global leading names into the country.

The projection, as explained by Eugene Sangmortey, Team Lead at JET, is attributed to the enticing opportunities for carmakers to integrate into regional and global supply chains, especially with the implementation of the Africa Continental Free Trade Area (AfCFTA).

“JET will continue to support the sustainable growth and development of the automotive industry, working with investors, policy-makers and key stakeholders to unlock investment opportunities and create highly skilled jobs,” he said.

This was revealed during the conclusion of a four-day India-Ghana Automotive Investor Trade Mission in Accra organised by JET, a programme funded by the United Kingdom (UK). The event focused on fostering partnerships and attracting investments into the growing domestic automotive industry.

Historically, Ghana has depended on imported used vehicles. However, in recent years, several vehicle manufacturing and assembly plants have been established in the country, with others in the process of setting up operations.

JET estimates the value of the domestic automotive industry at about US$4billion.

To promote growth and streamline the sector, the Ghana Automotive Development Policy (GADP), which aims at encouraging domestic production and attracting investments in the automotive industry, has been introduced.

Trade mission

The India-Ghana Automotive Investor Trade Mission showcased exciting opportunities for Indian automobile manufacturers to venture into the local automotive market in Ghana, aligning with the country’s ambition to industrialise and become a car manufacturing hub.

It brought together key stakeholders from the Indian and Ghanaian business communities as well as government institutions, providing a platform for engagement and partnership building.

Renowned Indian firms, including Sugrah Mobility Pvt. Ltd, Shema E-Vehicles and One Electric Motorcycles, expressed their readiness to identify strategic partnerships and unlock investments in the local manufacturing space, particularly in the production of 2/3 wheeler, energy-efficient electric and practical motorcycles tailored for delivery services, among other applications.

During the four-day visit, the Indian delegation engaged with the Ghana Investment Promotion Centre to explore investment opportunities in the country. Additionally, they held discussions with the Ministry of Transport and the Ministry of Trade and Industry to gain insights into Ghana’s trade and investment plans. The delegation also participated in a networking event with stakeholders in the domestic automotive industry.

The Indian-Ghana Automotive Investor Trade Mission comes on the back of the successful UK-Ghana investor Trade Mission last month, which fostered partnerships toward growing the automotive sector.