Ghana’s Auto Industry: Need for Financing Framework to Enhance…

Mr. Jeffrey Oppong Peprah, CEO of Volkswagen Ghana, has advocated for a financing framework to increase the appeal of locally assembled vehicles by addressing the current cash purchasing model. High interest rates are a deterrent, pushing consumers toward imported used vehicles. Collaboration with the government and private sector is essential to create more affordable financing solutions, stimulating economic growth and reducing reliance on hazardous imports.

Mr. Jeffrey Oppong Peprah, CEO of Volkswagen (VW) Ghana, has emphasized the necessity for a financing framework to enhance the demand for locally assembled vehicles in Ghana. He pointed out that the current market struggles with cash-based transactions, limiting wider access to new vehicles as many consumers opt to save over long periods to make their purchases.

During the unveiling of the new Volkswagen Touareg in Accra, Peprah highlighted the vehicle’s impressive features, including a 3.0 TSI V6 engine generating 250 kW and an advanced eight-speed automatic gearbox. Additional features include IQ Light HD matrix headlights and specially designed LED taillights, tailored for Ghana’s varied terrains.

The CEO also expressed the urgent need to transition away from the traditional cash purchase model, noting that high-interest rates on loans, currently over 24 percent, severely impact average Ghanaians’ purchasing power and drive them toward imported used vehicles instead.

Furthermore, he announced that the Automobile Association of Ghana is working with the government to establish a government-supported loan system aimed at reducing financing costs for vehicle purchases. This initiative focuses on obtaining lower interest rates to help local assembly become a feasible option for more people.

Peprah underscored the importance of collaboration between the government, banks, insurance firms, and the private sector to create affordable financing solutions for Ghanaians wishing to purchase vehicles. Such initiatives are anticipated to stimulate economic growth and generate jobs within the automotive industry.

By making locally assembled vehicles more affordable, the initiative aims to reduce the demand for unsafe and environmentally hazardous imports. Peprah expressed optimism in a partnership among stakeholders, which he believes can lead to the establishment of a sustainable vehicle financing framework that benefits the Ghanaian economy and its citizens.

The call for a financing framework by Mr. Jeffrey Oppong Peprah, aimed at boosting the demand for locally assembled vehicles in Ghana, underscores the challenges posed by cash purchases and high-interest rates. The collaborative efforts between government and private sectors are crucial to making vehicle financing accessible. This initiative could not only enhance local vehicle assembly patronage but also stimulate overall economic growth and job creation in the automotive sector.

Original Source: gna.org.gh