President Mahama calls for long-term vehicle financing to boost local auto industry
President John Dramani Mahama has called for the development of affordable, long-term vehicle financing schemes to enable more Ghanaians to purchase locally assembled vehicles and support the growth of the domestic automotive industry.
He said while the expansion of vehicle assembly plants was important, Ghana also needed to create the financial instruments that would allow workers to afford the vehicles being produced locally.
President Mahama made the call when he commissioned Phase III of the Zonda Tech Ghana Limited vehicle assembly plant in Tema.
He said many workers in both the public and private sectors were interested in buying new vehicles but were often constrained by the lack of suitable financing arrangements.
“We have many employees in the formal industry, including public sector employees, and so government employees, doctors, teachers, nurses and so many other categories of employees want to buy new cars if they can get the financing to do it,” he said.
The President added that private sector executives and other workers also wanted to purchase new vehicles if affordable credit was available.
Monthly payment system
President Mahama proposed long-term credit arrangements that would allow salaried workers to acquire vehicles and repay the cost through manageable monthly payments.
He said such a system would make vehicle ownership more accessible while creating a reliable domestic market for vehicles assembled in Ghana.
“Credit long term that allows them to buy these cars on hire purchase and pay over time from their salary is the way to go,” he said.
The President said government was prepared to work with financial institutions and vehicle manufacturers to develop appropriate financing instruments.
“Government is ready to collaborate with the private sector. We’re ready to collaborate with the manufacturers. We’re ready to sit down with them and come out with financing instruments that allow people who are employed and engaged and receive an income to be able to take a car of their choice and pay monthly over a certain period until they have defrayed the cost,” he stated.
Boosting local manufacturing
President Mahama said access to vehicle financing would complement government’s efforts to position Ghana as the automotive manufacturing hub of West Africa.
He noted that Ghana had attracted several international vehicle manufacturers under the Ghana Automotive Development Policy and was increasingly developing capacity to assemble vehicles locally.
However, he stressed that the success of the industry would depend not only on production but also on creating a strong local market and developing the wider automotive value chain.
He said the government was also encouraging manufacturers to deepen local production of components such as batteries, tyres, wiring harnesses, seats, glass, plastics and metal parts.
According to the President, greater local participation would retain more value within the Ghanaian economy, strengthen local businesses and create additional employment.
Jobs and economic activity
President Mahama said the Phase III expansion of the Zonda Tech plant was expected to almost double the company’s direct employment and create about 1,000 additional indirect jobs.
The indirect jobs, he explained, would be generated in areas including logistics, vehicle maintenance, component supply, distribution and other supporting businesses.
He said the automotive industry had the potential to support other sectors of the economy, including agriculture, mining, construction and regional trade.
The President therefore urged the banking sector to see vehicle financing as an opportunity to support both consumers and Ghana’s emerging automotive manufacturing industry.
He said closer collaboration among government, banks and manufacturers could create a sustainable financing model that would make locally assembled vehicles more accessible to Ghanaian workers while strengthening demand for vehicles produced in the country.
