During the inauguration, Mr Kassem M. Odaymat, COO of Rana Motors, shows President Akufo Addo (third from left) the assembled vehicles. Photo. Vincent Dzatse.
Yesterday, President Nana Addo Dankwa Akufo-Addo inaugurated Rana Motors' newly established vehicle assembly facility in Amasaman, Ga West Municipality, and pledged to introduce sector-specific initiatives to drive Ghana's industrial transformation.
The facility, which occupies 13.5 hectares of territory, is the largest of the country's five vehicle assembly plants.
During the inauguration, Mr Kassem M. Odaymat, COO of Rana Motors, shows President Akufo Addo (third from left) the assembled vehicles. Image of Vincent Dzatse
Currently, the plant's operational capacity is 30,000 vehicles per year, rising to 70,000 at peak capacity.
According to the President, the government was working to create a conducive environment for businesses, particularly those within the 10 strategic anchor industries, to flourish, generate employment opportunities, and contribute to national development.
According to him, the establishment of the vehicle assembly facility was in line with the government's efforts to industrialize the country and transform Ghana into an automobile hub in the subregion of West Africa.
In this regard, he stated that the government championed the national automobile development policy in order to establish an environment conducive to attracting international automakers into the country.
President Akufo-Addo praised Rana Motors for the investment, which will complement government efforts to attract more Ghanaians into the automobile industry and enhance Ghana's annual vehicle assembly capacity to 100,000.
In support of the local vehicle assembly industry, he stated that the government had prioritized the purchase of locally-assembled automobiles and urged the private sector and individuals to purchase locally-made goods to generate the necessary demand and market.
President Akufo-Addo stated that the government was developing a vehicle financing program to enable Ghanaians without the financial means to purchase locally assembled automobiles.
As a cost-cutting measure, the government has already waived the value-added tax (VAT) on the sale of domestically-assembled vehicles, according to the president.He indicated that the Ministry of Finance was working on measures to guarantee the full implementation of the revised customs act in order to attract additional foreign investment.
President Akufo-Addo stated that Ghana would do its part to ensure that Africa reaches its goal of 1.5 million locally assembled cars by 2023 in order to maximize the market potential of the African Continental Free Trade Area (AfCFTA).
He urged all assemblers and original equipment manufacturers to support the government's plan to establish an integrated automotive development industry, noting that the Ghana Automotive Component Manufacturing Policy, which offers incentives to attract investors to the sector, is currently being drafted.
Incentives should translate into competitive pricing so that more Ghanaians can purchase vehicles assembled locally.
In a speech read on his behalf, the Minister of Trade and Industry, K.T. Hammond, stated that the opening of the Rana Motors assembly plant was the third vehicle assembly plant established for commercial production of global brands in Ghana and that, in addition to Kantanka Automobile Limited, there were five new assembly plants producing nine vehicle brands.
He remarked that the investment in the new facility strengthens Ghana's position as the region's top destination for investors in the automotive industry.
Under the newly proposed Components Manufacturing Policy, the government would support private sector investments in the local production of components and parts such as electric harnesses and wires, rubber extrusion parts, air and oil filters, lead acid batteries, shock absorbers, exhaust systems, steel wheel rims, brake system components, windscreens, and wiper blades.
He noted that the Ministry would consult with the Ministry of Finance regarding the Legislative Instrument announcing the effective date of implementation for all outstanding commitments in the provisions of the Customs (Amendment) Act, 2020 (Act 1014), stating that this was a crucial provision for the commencement of major investment in local component manufacturing.
Mr. Essam Odaymat, the CEO of Rana Motors, thanked the government for fostering an environment conducive to the operation of assemblers in the country.
He noted that the assembly plant would employ more than 300 individuals and had already trained approximately 3,000 individuals to provide automotive services.
Mr. Odaymat stated that his company was prepared to provide cutting-edge, technologically advanced automotive services in support of Ghana's plan to become the automobile center of West Africa.