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Business News for Wednesday, September 23, 2020
Source: Business 24
2020-09-23
President Nana Addo Dankwa Akufo-Addo at the unveiling ceremony for VW cars assembled in Ghana
The government’s automotive development policy to revitalize the domestic auto industry is paying off as more global automakers have announced plans to establish assembly plants locally, hinted the Managing Director of CFAO Motors Ghana.
“Our group is working on that; obviously by the end of 2021 we will be present as an assembly plant [in the local market] too, ”CEO Paulo Fernandes told Business24 in response to a question about whether the makers of the cars CFAO distributes in Ghana had plans to assemble locally.
He added: “Having an assembly plant in Ghana is a great opportunity for global automakers to produce new vehicles at cheaper prices for the population, and I think it’s a very good idea.”
For him, the measure reaffirms the confidence of the two automakers and CFAO in the national auto industry.
Several automakers have announced their intentions to establish assembly plants in the Ghanaian market, following the government’s launch of an automotive development policy to encourage investment in the sector. German automaker Volkswagen (VW) has already started assembling some of its brands locally.
However, for such investments to be successful, the CFAO Motors chief reiterated the need to ban used and salvage vehicles, which, he argued, was “a good thing for the environment and for the future of the country.”
“If the government supports us, such as banning used car imports, the new car market will grow and it will be good for everyone. It is dangerous for the growing nation to continue to buy vehicles that are not suitable to be driven in Ghana.
The automotive sector needs concerted efforts
In addition to government support, Fernandes said the local auto industry will need the support of banks, in terms of providing safe and sustainable means of financing for potential car buyers.
He said: “The auto industry will need very interesting financing solutions to grow, and it will be very difficult without the support of the banks. It should be a team effort between automakers, dealers, banks, and the government. This will be a game changer for the automotive sector. “
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