Ghana’s automobile market has been projected to reach a value of US$11bn by 2026, strongly underpinned by the emergence of global vehicle manufacturing giants setting up plants in the country.

The projection, by a Stanbic Bank research report, implies a compound annual growth rate of 15 percent over the next six years, after the market was valued at US$4bn in 2020.

“We expect a growth in [vehicle] sales of 8.3 percent this year due to the strong expected economic output over the same period and low base effects due to a forecasted strong decline in sales in 2020,” the report said.

Following the government’s implementation of an automotive development policy to attract investment into the sector, carmakers such as Volkswagen, Toyota and Suzuki have all set up local assembly plants, with plans to export locally-assembled vehicles to the West Africa market.

According to the report, with these major vehicle manufacturers expressing interest and making significant investments in opening and operating vehicle assembly plants in the country, Ghana has the potential to become a regional vehicle supplier.

The automotive sector is currently dominated by retailers of imported pre-owned cars and new-car dealerships.

It is estimated that every year, Ghana imports over 100,000 vehicles, costing US$1.5 billion, about 15 percent of its total import bill.