Ghana’s drive to become West Africa’s automotive hub faces a critical test, as industry leaders warn that delays in developing a national automotive components manufacturing policy could undermine the sector’s long-term competitiveness.
Since 2019, global brands such as Volkswagen, Toyota, and Nissan have established assembly plants in Ghana under the government’s Automotive Development Policy. But while assembly operations have grown, the absence of a structured components manufacturing framework means most parts are still imported limiting local value addition.
The Missing Link in Industrial Policy
Jeffrey Oppong Peprah, CEO of Volkswagen Ghana, has repeatedly stressed the need for urgent action. “Assembly is only the first step.
Without a robust component manufacturing ecosystem, Ghana will remain an assembly point, not a true auto industry,” he added.
Experts agree that industrial parts manufacturing creates up to 70% of auto industry jobs globally. The real wealth is in the supply chain like batteries, tires, glass, electronics. Without that, Ghana risks losing to Nigeria or Côte d’Ivoire.
Second-hand Market Pressure
Adding to the challenge is Ghana’s thriving second-hand vehicle and spare parts market, with hubs like Accra’s Abossey Okai dominating sales.
Mr. Samuel Adjei, Head of the Automobile Department at Opportunity International Technical Institute, said this reality is discouraging investors from scaling up.
“Even with the assembling, they are not making money out of it because of the second-hand market like Abossey Okai spare parts. So how will they be motivated to manufacture?” he questioned.
Without policy interventions, automakers say local assembly risks being drowned out by the influx of cheaper used cars and parts.
Regional Competition Heating Up
Meanwhile, Nigeria is already positioning itself with incentives for local component producers, while Morocco and South Africa dominate the continent’s supply chain. If Ghana does not act fast, industry analysts warn it could miss out on regional contracts under AfCFTA.
“Côte d’Ivoire is courting battery manufacturers. Nigeria is offering tax holidays. Ghana must respond with its own incentives, or we’ll assemble cars here with parts shipped from elsewhere,” said Mr Adjei.
SMEs and the Local Link
For Ghanaian SMEs, the gap presents both a challenge and an opportunity. Local firms in metal fabrication, plastics, and electronics could plug into the supply chain but only with policy support.
“SMEs need access to finance, skills training, and quality standards support to meet automakers’ demands,” he added.
A Call for Urgency
Industry stakeholders are pressing government to fast-track the pending Component Manufacturing Policy, which has been on the drawing board since 2021. They argue that the window of opportunity is closing fast.
“AfCFTA makes Ghana strategically positioned but only if we move now. Delay means we become consumers, not suppliers,” Mr. Adjei warned.
However, the Ministry of Trade and Industry has pledged to unveil a new framework by early 2026, but experts insist action is needed sooner.
“Assembly plants were a victory. But without parts and with second-hand imports overwhelming the market, the industry is incomplete,” he said.
