Volkswagen Ghana Expands Operations to Deepen Market Presence in Ghana and Sub-Saharan Africa
Volkswagen Ghana is strengthening its footprint in the Ghanaian automobile industry and positioning itself as a key player in Sub-Saharan Africa’s automotive sector. Having assembled vehicles locally for the past five years, the company is now working with the government and private sector stakeholders to introduce a vehicle financing facility aimed at making brand-new cars more affordable to consumers.
Managing Director of Volkswagen Ghana, Jeffery Oppong Peprah, has emphasized the need for a structured financing scheme, given that most vehicle purchases in Ghana are currently made in cash, a significant barrier to ownership. He noted that affordability concerns have driven many consumers to opt for used vehicles rather than new ones.
“We are engaging the government, the Automobile Association, banks, and the insurance industry to develop an incentivized loan scheme with lower interest rates, making it easier for Ghanaians to acquire new vehicles,” Mr. Peprah said. He stressed that with interest rates hovering around 24% or higher, ordinary Ghanaians find it difficult to secure vehicle loans, making financing reforms crucial.
Volkswagen Ghana’s local assembly plant has already contributed to reducing vehicle costs by over 30% through tax exemptions on imported vehicle parts. However, the company believes a well-structured financing scheme will further drive demand and volume sales. “If consumers have access to financing that allows them to spread payments over time, it will boost vehicle ownership and improve mobility across the country,” Mr. Peprah added.
Beyond Ghana, Volkswagen’s expansion aligns with its broader strategy for Sub-Saharan Africa, where the company sees opportunities for growth. By deepening operations in Ghana, Volkswagen aims to strengthen regional trade, reduce reliance on imported used vehicles, and establish Ghana as an automotive hub within West Africa.
Additionally, Volkswagen Ghana is introducing improved models such as the new Touareg, featuring enhanced technology and safety standards tailored to African road conditions. The company believes increasing the availability of locally assembled vehicles with warranty histories will help standardize the automobile industry in the region.
With sustained collaboration between the public and private sectors, Volkswagen Ghana is optimistic that its expansion efforts will not only enhance vehicle affordability in Ghana but also contribute to industrial growth and economic development across Sub-Saharan Africa.
