Global carmakers, Hyundai and KIA are to set up their assembly plants in Ghana by the end of 2022, according to government officials.
Ghana’s minister for trade, Alan Kyerematen said when these firms set up, they would be joining firms like “Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck” that are already operating in the country.
“The Ghana Auto Development programme” will create “6,600 manufacturing parts jobs in Ghana,” the minister said.
Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development programme = 3,600 assembly & 6,600 manufacturing parts jobs in Ghana. #InvestforJobs pic.twitter.com/JMHAmlM5VI
— Alan John Kyerematen (@AlanKyerematen) April 22, 2021
In 2019 Ghana announced that it would offer car making companies like Volkswagen and Nissan tax breaks of up to 10 years.
The move according to the government was intended to attract such automakers to the West African economy.
Setting up local manufacturing plants in Ghana, according to the government should grow its economy and create jobs.
In 2020 amid the coronavirus pandemic, Ghana’s President Nana Akufo-Addo unveiled Volkswagen vehicles assembled in the West African country for the first time.
That investment came in the framework of the G20 Compact with Africa (CwA), which was launched under Germany’s G20 Chairmanship in Berlin in June 2017.
The CwA aims to bring more private investment from the G20 countries to the African partner countries, amongst which Ghana is a frontrunner.