Ghana has signed a Memorandum of Understanding with Nissan Group of Africa for the establishment of automotive manufacturing industry in Ghana, which will make Ghana the hub for sales and marketing of Nissan in West Africa.
This was announced on Tuesday, 6th November 2018, when the Managing Director of Nissan Group of Africa, Mike Whitfield, paid a courtesy call on President Akufo-Addo.
According to Mr. Whitfield, Nissan aims to be the first car-maker to assemble vehicles in Ghana, building on its market leadership in the country.
Nissan models, he explained, accounted for 32.8% of vehicle sales in Ghana last year, with the company’s cars, pickups, and SUVs sold through a national network of six sales and service outlets.
“Nissan is the most popular auto brand in Ghana because the quality of our products and services has won the trust of our customers,” Whitfield said.
He continued, “We want to build on our leadership by supporting the government to create the environment for a successful automotive manufacturing industry in the country. Building vehicles in Ghana will enable us to further improve the products and services we offer to our customers here and will have significant, long-term benefits for the economy in terms of jobs and growth.”
On his part, President Akufo-Addo welcomed strongly the decision by Nissan to establish an automotive manufacturing industry in Ghana.
The President explained that his administration had embarked on a journey on moving the country away from being mere producers and exporters of raw materials, with a focus on value-addition and industrial activities.
One of the areas of focus, he stressed, was the automotive industry, the reason why his administration has spent the last 22 months strengthening the fundamentals of the Ghanaian economy to attract such investment.
“To have at A+ company like yours in Ghana is positive, and we welcome you strongly. We hope that the MoU that will be signed will not just remain an MoU, but will translate into concrete benefits for us all,” President Akufo-Addo said.
The MoU seeks to unlock economic potential, promote the development of the automotive sector, and promote investor-friendly regulatory frameworks that encourage sustainable car manufacturing. The aim is to promote infrastructure development, job creation and skills development in Ghana.
The Minister for Trade, Alan Kyerematen, also praised Nissan’s commitment to Ghana, saying, “we welcome this MOU and commit ourselves in turn to working with Nissan to create the necessary environment for the level of investment that will make Ghana’s automotive sector a reality.”
Industry-wide vehicle sales in Ghana have been growing steadily at an annual rate of about 10%, and now stand at about 9,150 vehicles a year.
Working closely with the government of Ghana and with other members of the African Association of Automotive Manufacturers, Nissan will provide its global expertise to establish a sustainable auto manufacturing industry in the country.
The agreement builds on Nissan’s investment in Nigeria, where in 2013, the company became the first major automaker to assemble cars.
Nissan to set up assembly plant in Ghana – Bawumia
Nissan’s plan to establish in Ghana was first announced by the Vice President, Dr. Mahamudu Bawumia in September, 2018.
German car manufacturer, Volkswagen and Sinotruk International from China have all served notice of setting up assembly plants in Ghana.
We’re not scared of competition – Kantanka
Following announcement of international automobile companies setting up in Ghana, the Chief Executive Officer (CEO) of the Kantanka Automobile Company, Kwadwo Safo Jnr. says his company is not scared of competition from any international automobile firm seeking to set up in Ghana.
“Mr. President. [The] Only thing we need is good policies to protect the automobile industry and help grow our local industries …To anyone that thinks @KantankaAuto is scared of competition. We are not. I simply want better policies for our auto industry,” he stated.