Ghana’s local vehicle assembly industry holds the key to developing a sustainable, homegrown used car market that’ll benefit consumers and strengthen the economy, according to Jeffrey Oppong Peprah, Chief Executive Officer of Volkswagen Ghana.
Speaking about the strategic importance of local manufacturing, Oppong Peprah described vehicle assembly as foundational work that extends far beyond producing brand new cars. It’s about creating a reliable source of quality used cars domestically, reducing dependence on imports that’ve dominated Ghana’s automotive landscape for decades.
“Local vehicle assembly is not only about producing brand new cars. It’s about laying the foundation for a future used car market that is traceable, affordable, and trusted,” he said, articulating a vision that challenges conventional thinking about Ghana’s automotive sector.
Volkswagen Ghana began operations in 2020 and has since assembled more than 2,600 vehicles at its Tema plant, which has an annual production capacity of 5,000 units. Despite this achievement, low local demand continues constraining production, largely due to limited access to auto financing that keeps many potential buyers locked in the cash-based market.
The challenge becomes clear when you look at the numbers. Imported used cars currently account for more than 70 percent of annual vehicle registrations in Ghana, with the country importing an average of 100,000 used vehicles yearly between 2015 and 2018, making it one of West Africa’s largest used car markets. That’s a deeply entrenched pattern that won’t shift overnight.
Oppong Peprah acknowledged the difficulty ahead but emphasized its necessity. “The transition will be difficult, but it is necessary if Ghana wants to build an integrated and future ready automotive industry,” he said, recognizing that challenging the status quo requires more than good intentions.
Developing a domestic used car ecosystem would provide multiple long-term benefits, including affordability for middle-income households who can’t stretch to brand new vehicle prices but need reliable transportation. It’d also create a formal resale market for locally assembled vehicles, complete with warranty coverage and transparent vehicle histories that imported used cars often lack.
The CEO’s also realistic about the disruption this transition could cause to the current used car import trade, which employs thousands of people and generates significant economic activity. However, he argues that the local automotive value chain would ultimately generate more skilled employment through technology transfer, component manufacturing, and industrial partnerships that create higher value jobs than simple import and resale operations.
“This is not a zero sum situation. It is an all on board movement that requires collaboration between government, industry players, and the public to ensure a smooth transition,” he emphasized, signaling that success depends on inclusive strategies rather than winner-take-all approaches.
The timing of this push coincides with broader policy discussions about Ghana’s automotive future. The government’s imposed a 35 percent import tax on vehicles competing with locally assembled ones, a policy Oppong Peprah described as essential for creating sustainable demand. Without such protections, locally assembled vehicles can’t compete with cheaper imported alternatives, making it nearly impossible to justify continued investment in manufacturing capacity.
On financing, Volkswagen Ghana’s working with government and stakeholders to create incentivized loan rates for individuals purchasing locally assembled vehicles. “We’re looking at specialized or incentivized loan percentage if you are buying a local assembly product. This will give people the appetite to go for these loans,” he explained, acknowledging that high interest rates remain a significant barrier to local vehicle purchases.
The company’s also pushing for implementation of Ghana’s automotive component manufacturing policy, which remains in draft form despite broad agreement on its importance. Oppong Peprah warned that delays could cost Ghana its competitive edge as neighboring countries like Côte d’Ivoire actively court the same Original Equipment Manufacturers that Ghana’s trying to attract.
Component manufacturing offers even greater economic value than vehicle assembly alone, potentially generating up to seven times more jobs. The subsector includes production of essential components such as engine parts, batteries, lighting systems, electronics, interior fittings, and underbody structures, representing the true powerhouse of automotive industrialization.
Volkswagen Ghana’s reaffirmed its commitment to its long-term vision for the country, noting that Ghana remains a strategic pillar in Volkswagen’s broader plan to establish a West African automotive hub aligned with African Continental Free Trade Area objectives. The company’s already exported 220 locally assembled vehicles to Côte d’Ivoire for AFCON games and sold others on the Rwandan market, demonstrating that Ghana-assembled vehicles can compete regionally.
The CEO stressed that policy consistency, affordable financing schemes, and stronger public awareness about the benefits of locally assembled vehicles are vital to ensuring Ghana’s auto industry continues growing and eventually powers a self-sustaining used car market. Without these elements, the vision remains aspirational rather than achievable.
There’s also an environmental dimension to this transition that deserves attention. Locally assembled vehicles, when eventually sold as used cars, become more affordable compared to imported ones burdened with high taxes. They also tend to be newer and more fuel efficient than the aging imported fleet, potentially reducing carbon emissions and improving air quality in Ghana’s congested cities.
However, Oppong Peprah’s careful to frame this transition as gradual rather than immediate. He’s called for phasing out older, less efficient vehicles through well-structured policies rather than abrupt bans that’d create economic shocks for import-dependent traders and consumers who rely on affordable used vehicles for mobility.
What makes this vision compelling isn’t just the economic arguments, but the recognition that Ghana’s automotive future shouldn’t mirror its past. The country’s been a dumping ground for aged vehicles from wealthier nations, accepting cars that no longer meet safety or emissions standards in their countries of origin. Building a local assembly industry offers a pathway toward newer, safer, cleaner vehicles that eventually create a domestic used car market with known histories and reliable quality.
The challenge lies in execution. Ghana’s attempted automotive industrialization before with mixed results, and skepticism remains about whether current initiatives will succeed where previous efforts stalled. Oppong Peprah’s emphasis on collaboration and inclusive transition suggests he’s aware that forcing change without broad stakeholder buy-in typically backfires.
For Volkswagen Ghana, which celebrated its fifth anniversary in October 2025 by launching the T-Cross model, the stakes are high. The company’s invested significantly in its Tema facility and needs growing demand to justify continued operations and planned expansion. Their long-term plan includes introducing multiple shifts in production, aligning with the government’s 24-hour economy initiative to drive industrialization and job creation.
Whether Ghana can successfully transition from import dependency to local manufacturing leadership remains uncertain. What’s clear is that without deliberate policy support, affordable financing, and changing consumer perceptions about locally assembled vehicles, the vision of a homegrown used car market powered by domestic production will remain just that, a vision rather than reality.
