Akufo-Addo unveils first assembled VW vehicles in Ghana

President Akufo-Addo has unveiled the first Volkswagen vehicle to be assembled in the country following the establishment of the VW assembly plant in Ghana.

Speaking at the unveiling ceremony in Accra 3 August, President Akufo-Addo expressed his delight at the decision taken by Volkswagen “to assemble a number of its brands right here in Ghana, not only for domestic use but also for the West African market”.

He recalled that many expressed doubts about the feasibility of such an assembly plant being established in Ghana.

“Two years on, we have confounded the doubting Thomases, and I am happy to be here this morning to launch, officially, the first Volkswagen vehicle that has been assembled in our country. It is a good day for Mother Ghana,” he said.

President Akufo-Addo said the presence of VW in Ghana has been facilitated by government’s bold move to develop the Ghana Automotive Development Policy, under the auspices of the Ministry of Trade and Industry, with generous fiscal incentives.

He said, “It is gratifying to note that VW is going beyond the ‘Beetle’ to assemble in Ghana other brands, namely Tiguan, Teramont, Amarok, Caddy, Polo and Passat.

“Volkswagen means ‘The People’s Car’, so I am expectant that the brands being assembled in Ghana will not only be affordable but also be of the highest quality.”  

Buy locally assembled vehicles

The president assured Volkswagen Ghana that government will continue to support the company in diverse ways to ensure the sustainability and profitability of this venture in the country.

To this end, he indicated that the Chief of Staff, Akosua Frema Osei-Opare, has recently issued a new directive to all ministries, departments and agencies, and, indeed, to the Public Procurement Authority, to give first preference to acquisition of locally assembled vehicles whenever public funds are used to buy vehicles.

“Additionally, the Minister for Finance, in his Mid-Year Budget Review Statement to Parliament, indicated that government is going to establish an Automobile Industry Development Support Centre, which will, amongst others, co-ordinate the technical processes for licensing domestic vehicle assemblers and manufacturers, and monitor, also, their compliance with industry regulations and standards,” he said.

“The centre will also co-ordinate the implementation of an essential element of a viable automotive sector: that is the establishment of a vehicle financing scheme, which will link financial institutions to individuals and groups interested in purchasing newly-assembled vehicles in Ghana.

“Furthermore, the centre will carry out an Automotive Skills Enhancement Programme to provide requisite skills for the various categories of the value chain of the automobile industry,” President Akufo-Addo said.

With the Chinese company Sinotruk already engaged in assembling trucks in Ghana, the president expressed the hope that other global automobile companies which have signalled their preparedness to set up shop in Ghana will soon follow the remarkable, pioneering example of Volkswagen.

Local dealers

President Akufo-Addo reiterated the government’s commitment not to destroy the livelihoods of local stakeholders engaged in the industry value chain.

“I have engaged with representatives of the various stakeholder groupings, and given them the assurance that the government will introduce the necessary policy safeguards to protect their interests, and enable them, also, over time, to adapt to the new realities of the emerging automotive sector,” he said.

President Akufo-Addo said the government will continue to introduce appropriate incentives and support interventions to attract both foreign and local investment into the automotive assembly and manufacturing sector in Ghana.

“It is worth noting that, already, a Ghanaian-owned company, the Kantanka Group, has a licence to undertake auto-assembly operations in Ghana. I believe the development and modernisation of the industry present a ‘win-win’ opportunity for both foreign and local companies engaged in the industry value chain,” he said.

It will be recalled that on Thursday 30 August 2018, the German Chancellor, Angela Merkel, paid a brief visit to Ghana, during which an agreement was reached between the government, Volkswagen and its Ghanaian partner for the assembly and, ultimately,  production of VW vehicles in the country.

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