VADUG kick against AI system and unfair competition

The Ghana Vehicle and Asset Dealers’ Union (VADUG) have kicked against the government’s Publican AI system at the ports warning that Ghana’s traditional car dealers are being squeezed out of business not just by market forces alone but coupled with foreign competition and what they describe as unfair government policies.

According to the Union, the country’s auto market is being shrouded in toxic competition as foreign assemblers are allowed to operate with rules that suppresses local business owners.

They argue that, Ghanaian importers of used vehicles from America, Europe, and Japan face a high tax burden of 35-50% in duties and taxes where as foreign market operators such as Chinese assemblers importing SKD and CKD kits enjoy duty exemptions that Ghanaian dealers don't.

In a statement issued on Thursday, June 11, 2026, VADUG emphasised that the situation is gradually weakening the local sector as these foreign brands continue to import and assemble vehicles in the county.

“Over the last few years, Ghana has seen a rapid influx of Chinese automobile brands. Companies like Zonda, GWM, Geely, and Jetour are now importing and assembling and even retailing directly here. We do not oppose foreign investment. But this current trend is unsustainable,” it said.

VADUG further raised concerns that without stricter and proper regulation, Ghana risks becoming a dumping site for substandard vehicles which could largely pose an environmental risk as China seeks to phase out petroleum and diesel cars by 2030.

“The risk goes beyond business. China has announced it will phase out petrol and diesel cars by 2030. They are now looking for dumping grounds for these combustion engine vehicles and Ghana has become one of their targets,” VADUG alleges.

The union is therefore calling on the government to create a level playing field by reforming taxes and duties to enable local dealers to compete fairly with foreign assemblers, support local dealers, and Protect consumers through strict enforcement of quality, safety, and warranty standards turning away substandard imports before they reach Ghanaian roads.

VADUG however reiterated its readiness for dialogue to find solutions, warning that thousands of Ghanaian families will pay the price.

Publican AI is an artificial intelligence-driven customs compliance and valuation tool used by the Ghana Revenue Authority (GRA) to detect under-declaration, stop revenue leakage, and ensure fair trade at the country's ports.

The system integrated into the existing Integrated Customs Management System (ICUMS) functions as a decision-support for custom officers.