Trade Minister urges local sourcing for AfCFTA benefits

Elizabeth Ofosu-Adjare, the Minister of Trade, has urged automotive firms in Ghana to use local components. This will help them benefit from the African Continental Free Trade Area (AfCFTA).

“To trade under AfCFTA, prioritize locally sourced materials,” she said. This includes tyres and batteries for duty-free trade.

Mrs. Ofosu-Adjare made this call during her visit to Zonda Tec Ghana Limited. Zonda is a leading assembler and distributor of vehicles in Tema.

She believes that sourcing locally will reduce imports and cut costs. It will also improve supply chain efficiency and make Ghana a competitive exporter.

The Minister announced that the government is reviewing the automotive policy. This review will include heavy-duty vehicles like trucks to align with AfCFTA.

According to the International Trade Administration, Ghana imports about 100,000 vehicles each year. The Automotive Development Policy aims to promote affordable new vehicles since 2019.

Mrs. Ofosu-Adjare stated that reforms could make Ghana an automotive hub in Africa. The continent has a population of 1.3 billion people.

“This revision aims to incentivize companies like Zonda,” she said. It ensures compliance with regulations from the Ghana Standards Authority.

She praised Zonda for employing over 500 Ghanaians and encouraged them to triple that number. She suggested adopting a three-shift model under the government’s 24-hour economy initiative.

The Minister supported Zonda’s plan for a training school for youth skills development. She plans to lead a delegation to China for investment in Ghana's auto sector.

She urged Zonda to send more workers to China for training as well. “In ten years, 90 percent of staff should be Ghanaians,” she emphasized.

“Buying ‘Made in Ghana’ sustains jobs and generates tax revenue,” she added. It helps transition the economy from import dependence to export-led growth.

Ms. Yang Yang, Managing Director of Zonda, praised Ghana's supportive environment for businesses like hers. She called for more government support as they enjoy the auto policy benefits.

Zonda has assembly plants from major brands like Toyota and Volkswagen present in Ghana. Ms. Yang requested better regulatory frameworks for heavy-duty vehicle assemblers.

On technology transfer, she mentioned Chinese engineers have trained local workers at their center in Ghana for six years now.

“This year, we are sending more engineers from Ghana to China,” she noted.

“Our employees are now skilled technicians but costly to maintain,” she added.

Ms. Yang listed various heavy equipment assembled by Zonda including bulldozers and excavators, along with pickups and SUVs.