Ghana is shifting gears in a big way. Once known mainly for importing used vehicles, the country is now attracting global car brands and building a reputation as a rising automotive hub in Africa. With new assembly plants, electric vehicle (EV) innovation, and government support, Ghana may soon earn the title of Africa’s new car capital.
According to Martina Biene, Chairperson of Volkswagen Group South Africa, Ghana is a key part of Volkswagen’s expansion strategy in West Africa. The company has opened an assembly facility in Accra that produces models like the Tiguan, Amarok, and T-Cross. But Volkswagen isn’t alone. Six major brands, Toyota, Nissan, Kia, Sinotruck, Japan Motors, and Kantanka,have all set up assembly plants under the Ghana Automotive Development Programme (GADP). Together, these companies can produce over 140,000 vehicles annually, enough to meet the country’s entire demand for new cars.
The government is fueling this transformation with policies that attract investment. According to Dr. Cassiel Ato Forson, Ghana’s Finance Minister, incentives like tax holidays, import duty waivers, and zero-rated VAT on locally assembled vehicles are helping drive growth. There’s also a plan to phase out imports of cars older than 10 years, encouraging buyers to choose newer, locally made models.
Local brands are also stepping up. Kwadwo Safo Kantanka Jnr, CEO of Kantanka Automobile, is leading Ghana’s homegrown car company. Kantanka designs and assembles vehicles tailored for Ghana’s roads and climate, including electric models. The company is also working with the Ghana Army and other institutions to promote local production.
Electric vehicles are a major part of Ghana’s automotive future. The country is positioning itself as West Africa’s EV hub, with plans to deploy 100 rapid-charging stations and add 1,400 megawatts of renewable energy to the grid over the next five years. Recently, the Energy Commission launched a 60-kilowatt solar-powered EV charging station at its headquarters in Accra. This facility, powered by 105 solar panels and backed by a lithium-ion battery bank, is part of a broader push to reduce carbon emissions and promote sustainable transport.
Private companies are also driving the EV revolution. DriveEVGh recently launched an EV showroom in Accra, showcasing electric cars and offering flexible payment plans. The company’s CEO, Ashie Galloway, says EVs are not only eco-friendly but also 70% cheaper to operate than fuel-powered cars. Meanwhile, Impact Hub Accra is supporting startups that build locally relevant EVs, especially for last-mile delivery.
Is Ghana just starting or already in the lead?
Ghana’s auto industry is growing fast. Big car brands are building locally, and electric vehicles are taking off. The government is giving tax breaks and helping local companies. But is this enough to call Ghana Africa’s new car capital?
Experts say Ghana’s car market is doing well but still has a long way to go. South Africa, for example, produces and exports far more cars. Ghana will need to grow its factories, parts suppliers, and sales to truly catch up.
Still, Ghana has big advantages: its location, stable politics, and access to lots of African markets through AfCFTA. If the country keeps improving and stays focused, it could become a big leader in Africa’s car world.
So, has Ghana arrived? Not yet. But it’s in the race, and the engine is definitely running.
