The African Association of Automotive Manufacturers (AAAM) hosted an exploratory visit by automotive component manufacturers to Ghana in the first week of March. The objective was to introduce potential investors to the Ghanaian automotive market. The initial visit was focused on aftermarket opportunities, which in time will also support OE assembly as the volumes grow, as currently almost all components are imported.
Executives from Maxe (a division of KAP Automotive), Supreme Springs (a division of Metair) and Hudson Rubber were involved in a week of back to back engagements with OEM assemblers, local manufacturers, vehicle dealers, and spare parts importers as well as the Ghana Standards Authority, the AfCFTA Secretariat and the Ministry of Trade and Industry.
A particularly important aspect of the Ghana Automotive Development Policy is to develop auto component manufacturing with local partners. In a positive meeting with Minister Kyerematen on the last day of the visit, the Minister emphasized the significance of this initiative and the government's willingness to engage on competitive fiscal incentives for those component manufacturers wanting to invest in Ghana.
“This is the first of many visits planned by the AAAM office in Accra in support of developing the automotive industry in Ghana”, said David Coffey the CEO of AAAM. “It was most encouraging to witness the positive interaction between potential investors, local companies and the willing support offered by the Ghanaian authorities”, concluded Coffey.
The Hon. Alan Kyerematen indicated that the takeoff of the Component Manufacturing industry within the Automotive Sector would provide a strategic guideline for the development of the steel, aluminum, and rubber industry in the country.