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Volkswagen Opens New Assembling Facility in Ghana

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CEM REPORT, AUTOMOBILE | Volkswagen (VW) Ghana Limited has opened a 5,000 / cars and pickups capacity assembly plant in the Tema Free Zone enclave of the gold rich country.

Mr Jeffery Oppong Peprah, Managing Director of VW Ghana told Ghana News Agency that the company had so far spent about eight million Euros in establishing a branch of the Germany Company in Ghana. The new plant replaces the previous one opened in Accra in August 2020.

According to Mr Samuel Abu Jinapor, the caretaker Minister of Trade and Industry, and substantive Minister of Lands and Natural Resources, establishment of the VW plant in Ghana was an offshoot from a Memorandum of Understanding (MoU)which was signed between the Government of Ghana and German Chancellor when she visited Ghana in 2018.

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The MOU came into effect through the Ghana Automotive Development Policy (GADP) which was approved by Cabinet.

According to Mr Peprah, VW currently produce six of its brands in Ghana namely, T-Cross, Teramount, Tiguan, Amarock, Passat, and Polo. Siting the plant in Tema, close to Tema Port provides them enough space to expand aided by ease of export to other countries within the sub-region.

Mr Peprah emphasized that VW vehicles produced in Ghana are competitive, having the same quality with the ones produced in South Africa and Germany but relatively cheaper to purchase due to the VAT-free incentive from the government to buyers as well as the non-payment of import tax on the vehicles compared to the imported ones.

He commended the Government of Ghana for the initiative on the automotive industry following the economic benefits it has had on other economies. He called for speedy implementation of the complete automotive policy to guaranty full benefits from their investments.

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Parts of the policy awaiting full implementations include the ban on importation of used vehicles which are unfriendly to the environment and human health as well as the auto financing policies meant to support potential buyers of locally assembled vehicles.

Currently Ghana has six vehicle assembling plants producing nine brands of vehicles. Other Initiatives that are aimed at supporting the automotive industry include the Ghana Integrated Aluminium Development programme.

In the coming days, Ghana government will expedite action on the automotive component manufacturing policy which would provide the needed full support for the VW companies and the entire industry.

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