Ghana industrial and automotive sector expansion

President John Dramani Mahama has introduced several industrial and regulatory initiatives to support Ghana’s ‘24-hour economy agenda.’ Initial efforts focused on agro-industrialization, including the planned establishment of a maize processing plant in the Sissala enclave to prevent post-harvest losses and support local farmers.

In a significant move for the automotive sector, the government has commissioned the third phase of the Zonda Tech Ghana Limited vehicle assembly plant in Tema. This expansion is expected to double direct employment and create approximately 1,000 indirect jobs across the automotive value chain.

To bolster the domestic industry, the Ministries of Finance and Trade and Industry are finalizing a new incentive framework. This policy ties VAT exemptions to specific local production thresholds to prevent companies from claiming assembly status through minimal tasks, such as ‘removing steering wheels and tires from imported vehicles.’

Furthermore, the government is developing a comprehensive electric vehicle (EV) policy to manage the growth of charging stations and prevent strain on the national electricity grid. President Mahama emphasized a long-term goal of creating an integrated industry that leverages Ghana’s lithium resources to move from mineral extraction to battery and vehicle production for both domestic and West African markets.