…as it reinforces commitment to Ghana’s automotive industry.
By Ernest Bako WUBONTO
The United Kingdom (UK) government has announced plans to facilitate £50 million in funding to improve access to auto credit in Ghana, a strategic step to boost local vehicle ownership and support the growth of the country’s automotive industry.
Speaking at the Ghana Automotive Summit 2025, held by the Automobile Assemblers Association of Ghana (AAAG), the Development Director at the British High Commission, Richard Sandall, stressed that despite the significant efforts by the automobile assemblers in the country, high interest rates, collateral demands, among others, have remained a bottleneck to sales.
He highlighted that reliance on cash-and-carry purchases has limited many Ghanaians from owning new locally assembled vehicles, hence the need to eliminate this very critical setback to boost brand new vehicle sales.
To address this, the UK is working with its development finance partner institutions and commercial banks to establish a financing framework for auto credit.
“The uptake of locally assembled vehicles will not happen by chance. With interest rates still prohibitively high, most vehicles are bought with cash, shutting out many Ghanaians from the opportunity to own a brand-new, made-in-Ghana vehicle. That’s why we’re stepping in to help the industry, the financial sector, and the government make change a reality,” he said.
When successful, the proposed £50 million worth of term sheets being discussed between development finance institutions and participating commercial banks will increase affordability for Ghanaians to purchase locally assembled vehicles with lower interest rates, support business expansion, particularly under Ghana’s emerging 24-hour economy, and strengthen the automotive market, driving demand for Ghanaian-assembled cars, the development director explained.
UK’s Continued Support for the Automotive Industry
Mr. Sandall reaffirmed the UK’s commitment to Ghana’s automotive sector, which has already seen over £60 million in private investment since the Ghana Automotive Development Policy (GADP) was introduced in 2019.
The UK has played a key role in the policy development and continues to support the sector’s development of component manufacturing policy, which is expected to take the industry a notch higher.
“The UK is committed to being at the forefront of Ghana’s automotive revolution. We believe that together, we can build a sector that drives jobs, innovation, and sustainable development for years to come,” he said.
He emphasises the critical role of policy, partnerships, and innovation in driving the future of Ghana’s automotive sector, reiterating that collaboration is vital for economic development, as it facilitates industrial growth, green mobility, and sustainable job creation through policy, investment, and institutional support.
President of AAAG and CEO of Volkswagen Ghana, Jeffery Oppong Peprah, commended the British government for the continuous support to the local industry, stressing the importance of auto financing schemes to address cash and carry so that locally produced car sales could grow.
He emphasised the urgent need for a comprehensive national strategy that supports the development of a full automotive value chain from local component manufacturing to large-scale vehicle assembly.
“A clear and coordinated strategy is essential if we are to build a thriving industry capable of serving not just Ghana, but the entire West African region,” Mr. Peprah said.
The Ghana Automotive Summit
The Ghana Automotive Summit 2025 seeks to move the industry a step forward by addressing key challenges, including reducing reliance on used car imports, boosting local vehicle production and assembly, attracting foreign direct investment (FDI), promoting eco-friendly mobility solutions, and finally creating jobs and driving inclusive economic growth.
A key highlight of the summit was an exhibition showcasing over 100 vehicle models assembled in Ghana by AAAG members.
These members include Volkswagen Ghana, Japan Motors, Rana Motors, Kantanka Automobile, Silverstar Ghana, Stallion Group, Toyota Ghana and CFAO Motors Ghana.
