Volkswagen AG has started assembling cars in Ghana following a partial government ban on imports of used cars that is part of policy measures to turn the country into an automotive hub for West Africa’s 380 million people.
The German carmaker will initially assemble vehicles through a local partner, Universal Motors Ltd., Thomas Schaefer, head for sub-Saharan Africa at Volkswagen, said during a launch of the new VW Assemby plant Monday.
The facility targets fully installed capacity of 5,000 cars a year, he said through a videocall.
“Once the policy has been fully implemented and elements such as vehicle financing are in place,” Ghana will have a capacity for 300,000 new cars a year, Volkswagen Ghana Chief Executive Officer Jeffrey Oppong Peprah said at the event.
Nissan Motor Co., Toyota Motor Corp., Suzuki Motor Corp. and Renault SA are among automakers weighing the local assembly of vehicles in a country where used cars make up about 70 per cent of vehicle imports.
Ghana, which prohibited the importation of used cars older than 10 years old in May, wants to leverage a continental freetrade agreement to become West Africa’s manufacturing hub.