Ghana bans import of old cars to attract carmakers
Ghana has banned the importation of cars older than 10 years in an effort to encourage carmakers to set up factories in the West African country.
Today, used cars make up about 70% of vehicle imports in Ghana.
The new law also includes import-duty rebates for carmakers that manufacture or assemble cars in the country. According to Bloomberg, Volkswagen, Nissan, Toyota, Suzuki and Renault are some of the companies looking at possibilities to set up shop in Ghana.
Ghana is hoping to become a car-manufacturing hub for West Africa, a region home to more than 380 million people.
Carmakers entering the country will have to consider introducing car-loan services. Today, car loans are rare in Africa, pushing many people to buying used cars instead.
In a country where the average per capita income is no higher than $2,200, the vast budget-oriented used-car market is likely to suffer once the new ban is in place.