Proposed Automobile Dev't Centre could make Ghana dumping ground - Terkper

Former finance minister, Seth Terpker, has urged government to have a comprehensive approach to the proposed Automobile Development Centre so the country does not become a dumping ground.

His reaction follows government’s decision to establish an Automobile Industry Development Centre to coordinate the technical processes for licensing vehicle assemblers and manufacturers.

Speaking to the GhanaWeb, Seth Terkper raised concerns on the need for government to be clear on the type of vehicles the assembling firms will be producing.

“The question I have is, are we in Ghana and Africa likely to be the dumping ground. Remember Europe is going green and the US is going green. They are phasing out fossil fuel and they are moving to clean energy. So, what kind of vehicles are they coming to manufacture?”

He further stated that although the facility will provide opportunities for Ghana, it must equally be forward looking.

“There is something positive about this move. It will create jobs and all that but is it also forward looking or it is like we say dumping site.”

Ken Ofori-Atta, the Minister of Finance, presenting the 2020 mid-year budget review statement in Parliament on Thursday, said government will set up an Automobile Industry Development Centre to coordinate the technical processes for licensing vehicle assemblers and manufacturers.

According to him, the centre will also coordinate the implementation of a Vehicle Financing Scheme, which will link financial institutions to individuals and groups interested in purchasing newly assembled vehicles in Ghana.

The Minister said some leading global automobile companies referred to as Original Equipment Manufacturers had already established commercial interests in the country to assemble their brand of vehicles.

In March 2020, the Volkswagen Group rolled out the first VW locally assembled vehicle.

The VW Ghana is currently producing six different brands of vehicles-Tiguan, Teramont, Amarok, Passat, Polo, and Caddy.

The Toyota and Nissan Groups are said to be also positioning to establish assembly operations before the end of the year.

Mr Ofori-Atta said Sinotruk, a leading global manufacturer of Heavy Duty Trucks was assembling a variety of trucks in Ghana through Zonda Tec Ghana Limited.