According to Fitch Solutions, the research arm of Fitch, Ghana will strengthen its position as an auto manufacturing hub in West Africa in the coming years.
The report notes that the expected dominance of the nation in the West African auto space is the result of comprehensive government policies.
“We believe that the development of Ghana's metallurgical sector (in particular steel and aluminum) enhances the country's nascent auto industry's potential to move up the value chain,” the document says.
In August of this year, Ghana's President Akufo-Addo laid the foundation stone for an aluminum die-cast plant and CNC machine center, creating opportunities for the country's automotive components production.
“Thus, aluminum products such as aluminum alloy wheels, transmission housings, and some engine components such as piston rods and cylinder heads can be manufactured locally,” noted Fitch Solutions.
According to the report, Nigeria, the leader in car sales in the Economic Community of West African States in terms of volume, has not attracted the attention of automakers due to the uncertainty of government policies and difficult investment conditions.
Fitch Solutions predicts that Kenya is likely to maintain its dominant position in East Africa, while South Africa will maintain its position in the automotive industry in the South African region.
Ghana is a West African country on the Gulf of Guinea, famous for its fauna, ancient forts and secluded beaches, such as the resort of Busua.