The UK government has shared plans to provide £50 million in funding to enhance auto credit access in Ghana, aiming to boost local vehicle ownership and automotive industry growth.
Richard Sandall, Development Director at the British High Commission, shared this at the Ghana Automotive Summit 2025, held by the Automobile Assemblers Association of Ghana (AAAG),
highlighting that high interest rates and collateral demands have hindered sales of automobile assemblers in Ghana. Particularly, he mentioned that reliance on cash-and-carry purchases has limited many Ghanaians from owning new locally assembled vehicles.
“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,” Sandall stated.
The UK government is working hand in hand with commercial banks and development finance organizations to establish a financing framework for auto credit. This aims to boost the automobile sector, promote business expansion, and make it more affordable.
Since the majority are purchased with cash, the goal is to assist Ghanaians in owning brand-new, domestically produced automobiles.
How does this impact low-income earners?
If properly executed, the UK’s £50 million plan to increase auto credit availability in Ghana could greatly help low-income earners. It would reduce interest rates and collateral requirements, which are the two significant obstacles for those with low incomes.
Additionally, vehicle buyers can now move from cash-and-carry to credit, enabling low-income earners to spread out payments over time and increasing the accessibility of car ownership.
Having a car can help small business owners and create job opportunities, particularly in places with little access to public transportation. Credit programs linked to locally built automobiles can also lower the cost of these vehicles, promoting homegrown production and job growth.
UK’s support for the automotive industry
With more than £60 million in private investment since the Ghana Automotive Development Policy was introduced in 2019, the UK has reaffirmed its support for Ghana’s automotive industry. In order to promote employment, innovation, and sustainable development, the UK has played a significant role in the creation of policies and is still supporting the sector’s component manufacturing policy. Jeffrey Oppong Peprah, the CEO of Volkswagen Ghana and President of AAAG, commended the British government for its ongoing assistance, stressing the significance of car financing programs and a thorough national plan for the automotive value chain. (Business and Financial Times)
