Bank of Africa (BOA) Ghana has signed a Memorandum of Understanding (MoU) with the Car Rentals Association of Ghana (CRAG) to provide tailored vehicle financing for association members, in a deal expected to modernise Ghana’s car rental industry and strengthen its contribution to the tourism sector.
The agreement was signed at BOA Ghana’s head office in Accra and formalises access by CRAG members to the bank’s Vehicle Finance Facility (VFF), one of its flagship lending products. Under the arrangement, members in good standing can access up to 90 per cent of the cost of new or used vehicles less than five years old, with a maximum loan tenor of 60 months and a fixed interest rate of 15 per cent per annum.
Borrowers are required to make a 10 per cent deposit on the vehicle cost and pay a one per cent flat facility fee and a one per cent flat arrangement fee on the approved loan amount, both payable upfront. The MoU also guarantees CRAG members expedited processing and limited documentation requirements relative to standard VFF applicants, giving the association’s membership a preferential service framework.
William Boateng, Executive Director for Business Development at BOA Ghana, said the partnership reflects the bank’s commitment to supporting productive sectors of the Ghanaian economy beyond conventional lending services. He described Ghana’s car rental industry as a critical first point of contact for visitors and investors arriving in the country, noting that the quality of the experience shapes perceptions of Ghana as a destination and business environment.
Boateng noted that BOA Ghana is a subsidiary of the BMCE Bank of Africa Group, present in 33 countries across four continents with operations in 20 African nations as well as offices in China, Paris and Dubai. He said the group’s continental footprint positions BOA Ghana well to support sectors with both domestic and international dimensions.
CRAG President Michael Sarpong described the agreement as a significant breakthrough for an industry that has long struggled with restrictive access to financing. He said many car rental operators had been unable to respond to growing customer demand for newer vehicles due to the difficulty of securing loans under standard commercial banking conditions.
Sarpong said the new framework removes the key obstacle that had prevented members from replacing ageing fleets, adding that the agreement would allow the association to deliver a more competitive and professional service to both domestic and international clients.
The signing was attended by a senior BOA Ghana delegation including Deputy Managing Director Fatoumata Gakou, Executive Head and Company Secretary Muctar Abbas, Head of Financial Control Prince Aitee, Head of Retail Haleema Akyireba, Head of Human Resources and Administration Eric Kojo Van-Ess, Head of Credit Risk Effie Amissah, Head of Credit Analysis Emmanuel Bambara and other senior officials.
The car rental sector operates at the intersection of transport and tourism, two sectors identified as priority areas under President John Mahama’s economic recovery agenda. The Ghana Tourism Authority has projected that international arrivals could reach 1.2 million by the end of 2026, a figure that places growing pressure on ground transport providers to scale capacity and improve service standards.
BOA Ghana operates a branch network of 23 locations spread across six regions of Ghana, along with two business centres in Accra and Tema.
