General Overview

The automotive sector in Ghana is largely made up of local and international assemblers, distributors of new vehicles (including American vehicles), and retailers of imported used vehicles.

Ghana imports about 100,000 vehicles per year. About 90 percent are used. The United States, Japan, and Germany are leading suppliers. Please see our market intelligence reporting on Safety and Conformity Assessment Affecting Used Autos, as well as  high customs valuation assessments for used vehicles. U.S. suppliers should contact Commercial Service Ghana Commercial Specialist PaaEkow Quansah at Office.Accra@trade.gov to understand the latest dynamics on a yet-to-be-implemented ban on older vehicles and changing safety inspection requirements for used vehicles.  

Ghana is seeking to change the dynamic of importing used autos by attracting investment from leading Original Equipment Manufacturers (OEMs). The 2019 Ghana Automotive Development Policy is aimed at producing affordable new vehicles in the Ghanaian market and reducing the heavy reliance on used vehicles. Toyota, Volkswagen, Nissan, Suzuki, KIA and Mahindra have set up assembly plants.  The local company Kantanka Automobile Company Limited assembles the Kantanka line of vehicles from Completely Knocked Down (CKD) kits from China. It mainly produces sedans and SUVs as well as some military vehicles. The Government of Ghana has procured some of these local vehicles for its own use. Other companies such as Saglev are seeking to set up assembly plants for electrical vehicles using Chinese completely knocked down (CKD) kits. Such kits benefit from duty free treatment, whereas imported autos face tariffs up to 35%. Ghana is also applying a 15% VAT (plus other charges) to imports, but currently exempts domestically manufactured and assembled vehicles from the VAT.    

Opportunities

• Auto importers periodically contact Commercial Service Ghana to seek suppliers of specific autos as well as OEM and aftermarket parts and supplies to help service autos in Ghana.
• Ghana and wider Africa are seeking to create a regional autos production chain, including their own parts production, which may create machinery and tool and die export opportunities for U.S. companies. Producers in Ghana may receive reduced or duty-free access to a wide range of other Africa countries via the new African Continental Free Trade Agreement (AfCFTA).  
• Electrical Vehicles (EV) and charging stations:   The EV market in Ghana is at a nascent stage but is evolving quickly.  High fuel costs (reaching $1.42 per liter in September 2022) as well as Ghana’s generally stable electricity supply, have contributed to local consumers starting to switch to hybrid or EVs. There are opportunities to provide conversion kits, EVs themselves, as well as charging stations, solar or other small-scale power solutions to the charging stations,  and associated payment technology for standalone charging stations.
• There is a general acceptance of the importance of taking action to preserve the environment and the county has a target of achieving net zero emissions by 2070. The transportation sector currently contributes 47.7% of energy related carbon emissions. 
• For additional information on opportunities within the automotive sector including that on EV kindly see the CS Ghana’s market intelligence reports on the Electrical Vehicle Sector and Electrical Vehicle Commercial Prospects. 

Resources

Ghana Investment Promotion Center

Contact: U.S. Commercial Service Ghana Commercial Specialist PaaEkow Quansah at Office.Accra@trade.gov or +233 (0) 30 274 1329 for more information.