Vehicles are an essential part of transportation and a major driver of economic growth, as they provide revenue and jobs. Revenue-generating elements include import taxes, shipping expenses, and car sales. Motor vehicles also boost economic activity and may even save lives by supporting commercial driving, road development, maintenance, and car washes.
But in Ghana, cars are frequently viewed as a luxury, putting their owners in higher tax brackets and adding to their financial burdens. This raises problems with imports, car kinds, and ownership expenses due to luxury classification.
At the Automotive Industry Summit in Ghana this year, it was established that over 90 percent of Ghana’s vehicle imports are used and salvaged, raising safety and environmental concerns in an era when climate change is of major concern to every country. According to experts, this has left the new vehicle market struggling at under 10 percent penetration, stifling investment toward component manufacturing and industrial growth.
Why used cars are the go-to for Ghanaian importers and car owners
The average Ghanaian cannot afford a brand-new car due to low income levels. As a result, car ownership is often viewed as a luxury that many people struggle to attain, especially in the face of rising inflation. Some attribute this challenge to high importation costs and burdensome taxes, while others point to the expensive maintenance of new vehicles, poor road conditions, and other significant costs associated with owning a car in Ghana.
Environmental effects of used cars
Due to the fact that new cars are becoming more and more affordable, there is a growing demand for used cars in Ghana. These older vehicles frequently lack safety features that Americans take for granted, such as airbags and anti-lock brakes. Ghana’s National Road Safety Authority cautions that there hasn’t been much progress in discouraging the importation of cars that are too old.
Due to outdated emission controls or the removal of catalytic converters, older cars—the majority of which are over 20 years old—emit harmful air pollutants like black smoke.
With an average air pollution level eleven times greater than what the World Health Organization considers safe, Accra’s congested streets rank among the most polluted in the world. People are at risk for chronic respiratory conditions and climate change as a result of the low enforcement of regulations intended to address the situation. Africa is already experiencing the most severe effects of climate change, so it is imperative that it not be turned into a landfill for rickety and used foreign vehicles.
Conclusion
Despite these challenges, there are no established laws that ban the importation of vehicles over 10 years old. The United Nations Environment Programme (UNEP) reports that only nine African countries have a good or very good regulatory framework for used vehicles, with four banning the import entirely. Rules around used car imports are often poorly enforced, with 20 countries imposing maximum age limits on imported vehicles. Only four African countries have adopted a used vehicle emissions standard or mandatory labeling of fuel consumption and emissions.
These harmful impacts of used cars have stimulated calls for stricter policies, including bans and age restrictions, to reduce heavy reliance on used vehicles. However, Ghana’s experience suggests these measures don’t yield significant public health benefits, highlighting the need for more comprehensive policies for cleaner, safer, and more affordable transport.
