Question

Explain automobile Industry and its characteristics in the country of Ghana.

Answer 1

The automobile sector fo Ghana is one of the main driving sectors of the economy as it attracts one of the largest inflows of FDI from the other countries. Ghana is considered to be the 9^th largest economy of Africa and it is a multicultural and multi-ethnicity country. The country has a number of major players in the automobile sector. The most popular brands are KIA, Mitsubishi, Volkswagen, Toyota, Renault, Hyundai, Mercedes Benz, and Nissan

The automobile sector of Ghana is expected to increase at a CAGR of 6.06% and it is expected to have a good future growth resulting from the efforts of Kantaka Group in the form of “Made in Ghana” vehicles and the industry is also attracting some of the most talented workers in the country.

Due to the proposed reduction in the corporate tax by 20-25% on the imports on automotive parts and components will boost this industry further. The country is seeing an increase in the number of people having cars. In the year 2010 the vehicle owing ratio was 50 vehicles per 1000 population while in 2017, it raised to 73 vehicles per 1000 population. The country has seen an increase in the new vehicle registration as 2,540 new vehicle registration was done in 2005 and it rose to 4,268 in 2018. There is a 59% contribution of passenger vehicle in this industry