Government to roll out Asset Based Vehicle Financing Scheme – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has said government will soon roll out an Asset Based Vehicle Financing Scheme as part of efforts to stimulate demand for the purchase and patronage of locally manufactured vehicles in the country.

The scheme, according to him, will afford Ghanaians the opportunity to purchase locally manufactured and assembled vehicles under the Ghana Automotive Development Policy.

Speaking at the commissioning of the Rana Motors KIA vehicle assembly plant in Accra on May 2, President Akufo-Addo was optimistic that the scheme will improve demand for vehicles and gain traction for components and kits produced domestically.

“Government will continue to engage in discussions that will lead to the expansion of the market for domestically assembled vehicles at the regional and continental level to drive demand and create the necessary traction for assemblers to transition into complete knockdown assembly which will be supported by components and kits produced domestically to feed into the supply chain”

President Akufo-Addo said government has thus far shown committed through the implementation of the zero-rating of Value Added Tax (VAT) on the sale of domestically assembled vehicles.

“This means that there is no VAT on the sale of domestically assembled vehicles even to the end-user as part of efforts to make domestically assembled vehicles affordable”

He further lauded the efforts of Rana Motors Limited who is believes has significantly contributed towards Ghana’s private sector and government's industrialization agenda even in the wake of the current economic challenges.

President Akufo-Addo however said the state-of-the-art facility has the capacity to produce some 30,000 vehicles annually with the opportunity to further increase.

The Rana Motors KIA vehicle assembly plant is located at Amasaman in the Ga West Municipality of Greater Accra.

The plant is a landmark achievement that marks the roll out of the first generation of KIA vehicles assembled under the Ghana Automotive Development Policy of the government.

Meanwhile, the vehicle assembly plant currently employs about 250 workers and offers indirect employment to about 300 persons.

MA/FNOQ