Ghana is the 5th most attractive market for automobile sales in Sub-Saharan Africa (SSA) and 1st in West Africa, the updated Autos Sales Risk/Reward Index by Fitch Solutions, research arm of ratings agency, Fitch has revealed.

The nation scored 32.3%, but was enough to make it the most attractive automobile market in West Africa.

“Ghana has moved to the 5th position in the SSA region amid a better performance this quarter. A developing automotive sales environment amid a favourable political risk outlook enables policy certainty”, it noted.

The report said Ghana’s rapid economic growth resulting in an increase in incomes will lead to more people affording vehicles which will, in turn, drive demand over the long term.

However, it continues to suffer from high borrowing costs which impede the development of vehicle finance, and hence new vehicle sales.

The report expressed worry about Ghana’s underdeveloped road infrastructure which remains an impediment as the country scored 17.7% under its ‘quality and extent of transport network’ indicator, underperforming the Sub Saharan Africa region’s average score of 22.1%.But, progress is being made with regards to upgrading and developing of the country’s road infrastructure.

“Ghana’s low levels of vehicle ownership rates highlighted by a score of 11.3% under our ‘vehicle ownership per 1,000 inhabitants’ indicator signals further room for vehicle sales growth going forward as rising incomes lead to first-time buyers entering the market for vehicles. Furthermore, an age limit on imported vehicles permitted into the country will develop a local new vehicle sales market going forward as the flow of used vehicle imports slows to the benefit of newer vehicles”, the report pointed out.

According to the report, the Sub-Saharan Africa region continues to underperform the global average amid significant risks still present in the area.

Also, the county’s low levels of vehicle ownership rates signal further room for vehicle sales growth going forward. Meanwhile, South Africa placed 1st with a score of 52.4%, whilst Mauritius and Botswana were 2nd and 3rd respectively.