Ghana is preparing to host the second edition of the Ghana Automotive Summit 2025. The event is slated for June 3, 2025, where stakeholders will converge to consider strides made in the country’s developing automotive industry.
However, ahead of the summit and beyond the banners and speeches, policy think tank IMANI Africa believes the event must not just remain a talk shop. IMANI says the summit must be more than just a celebration, but a defining moment to transform the industry to meet the needs of all Ghanaians.
In a policy paper ahead of the summit cited by The High Street Journal, IMANI discusses the challenges and suggests solutions that will help transform the industry.
The Regulatory Framework
The automotive industry strategy is regulated by the Ghana Automotive Development Policy (GADP). The policy is under the umbrella of the Ghana Manufacturing Development Programme (GMDP). The focus of these policies is mainly to attract and protect automobile assemblers into the country.
These policies are also backed by the Customs (Amendment) Act, 2020, which seeks to protect local assemblers by restricting the importation of salvaged and over-aged vehicles. These interventions laid the groundwork for attracting big-name assemblers and positioning Ghana as a regional hub for vehicle production.
The Challenge
Despite the interventions seeking to develop the sector, four years on, the industry still faces structural obstacles that threaten to stall progress. While assembly plants are operational and more vehicle brands and models are being produced locally, patronage remains disappointingly low.
IMANI in an analysis identifies the core problem to be the affordability of the assembled vehicles, pushing Ghanaians to opt for second-hand or salvaged vehicles.
The locally assembled cars remain out of reach for most Ghanaians despite the vision of GADP to promote affordability through asset-based financing. The implementation has been slow and insufficient to drive mass adoption.
Due to the situation, the competition from used vehicles continues to drown the local industry. Salvaged and over-aged cars, often cheaper and more accessible, account for over 70% of all car imports in Ghana. IMANI warns that without drastic measures and adequate safeguards, the local industry could be crippled by the competitiveness.
Building a Vibrant Industry: IMANI’s Proposals
Ahead of the Ghana Automotive Summit 2025, the think tank insists that for the country to transition from hosting high-profile summits to building a sustainable automotive ecosystem, a few strategic shifts are essential. The public policy think tank makes a number of suggestions;
Deliberate Stimulation of Domestic Demand Through Financing
IMANI reiterates that affordability is central. The center believes in scaling up vehicle financing schemes tailored specifically for locally assembled vehicles will be very critical. Access to credit, interest subsidies, and lease-to-own schemes could help convert interest into actual purchases and divert demand from old-used cars to brand-new ones assembled locally.
This will build a reliable domestic market.
Ensure Policy Clarity and Consistency
IMANI has observed that the automotive industry thrives on predictability. Investors and assemblers need to trust that the protections and incentives they were promised will not be withdrawn overnight.
IMANI, therefore, cautions that inconsistent enforcement of the Customs (Amendment) Act sends mixed signals around undermining confidence in the sector.
“The industry cannot thrive if manufacturers are unsure whether the protections and incentives they were promised will endure. Any review of the Customs (Amendment) Act, 2020, which currently restricts the import of salvaged vehicles, must be carefully managed,” IMANI argues.
Address the Used Vehicle Challenge with Balanced Regulation
If a repeal of the ban on salvaged vehicles is pursued, IMANI recommends replacing it with regulations that target the most problematic imports, unsafe, polluting, or extremely old vehicles.
This would protect public interest while giving the local industry room to grow.
Develop Local Skills and Technical Capacity
The public policy think tank further indicates that a vibrant industry needs more than assembly lines. It needs a skilled workforce ranging from engineers, technicians, parts manufacturers, and designers. Without deliberate investment in technical and vocational education tailored to automotive needs, Ghana risks remaining a mere assembly point with limited local value added.
Leverage Government Procurement to Build Market Confidence
IMANI believes the government can set the tone by prioritizing locally assembled vehicles in public procurement. This would not only demonstrate faith in the policy but also create bulk demand to sustain production.
Ahead of the summit, IMANI says Ghana must move beyond ceremonial showcases and address the deeper structural issues hindering the automotive sector. The goal should not simply be to assemble cars but to build a resilient, inclusive industry that meets the needs of all Ghanaians, creates jobs, spurs innovation, and strengthens industrial sovereignty.
