Nissan building Assembly plant in Ghana

Japan Motors has set up a Nissan assembling plant in Ghana as part of efforts to develop the country’s automotive industry to serve both local and the African market.

The plant is expected to help promote skills development and job creation in the country.

The Managing Director of Japan Motors, Salem Kalmoni, at the launch of the project, promised to donate the first assembled Nissan pick-up to the Kwame Nkrumah University of Science and Technology, to support technical education.

“To show our commitment to cooperate and support technical education, and given this auspicious occasion, I am pleased to announce that Japan Motors and Nissan will be donating the first assembled Nissan pick-up to the premier Science and Technology University in Ghana, KNUST. We would like to congratulate them on being recently ranked as first university in Ghana and 12th in Africa. We will be donating this pick-up to their Mechanical Engineering department with the proviso that the vehicle be used for learning and training purposes only, and not as transport,” he announced.

Minister for Trade and Industry Alan Kyerematen said government was set to develop industrial enclaves which will boost manufacturing for the industry.

“You cannot dictate to investors where they site their facilities in this industry, but we know that the global practice has been that government also provides industrial lands, industrial space, and enclaves that allow manufacturers and investors to cluster so that they can reinforce each other’s production of vehicles and parts.

“And so as part of this framework, we are going to develop a major industrial enclave for automotive manufacturing and then also for component manufacturing”, Mr Kyerematen stated.

The General Manager in charge of Sales and Marketing at Japan Motors, Amine Kabarra, spoke about how the pricing of the cars would be determined.

“In terms of pricing, I think obviously, it would be impacted by the general automotive policy that the government is intending to implement so all new cars that will be imported directly from other factories around the world will be treated with high duty else those who are imported to be built locally here will have a lot of reductions and even zero taxes on them.”

The automotive industry

In March this year, government made a strong case for the passage of a law that will formally lay the platform for Ghana’s automotive industry.

This was done through an amendment to the Customs Act, 2015 (Act 891), which provides some incentives to Ghanaian car manufacturers through the Ghana Automotive Industry Policy. It also places a ban on salvage cars and second-hand cars of not more than ten years old.

According to government, the move is aimed at making Ghana the hub for Automotive Industry in the West African sub-region.

Already, Toyota and Suzuki have formally committed to set up car assembling plants in Ghana. This was after Nissan and Sinotruk also expressed an interest in Ghana, with Volkswagen already launching some locally made cars.

Currently, the country has three assembling plants, Volkswagen, Kantanka and the latest project by Japan Motors to assemble Nissan vehicles.

Ghana had earlier signed a Memorandum of Understanding with Nissan Group of Africa for the establishment of automotive manufacturing industry in Ghana, which will make Ghana the hub for sales and marketing of Nissan in West Africa.

President Nana Addo Dankwa Akufo-Addo, after the signing of the MoU, said the vehicle assembly plant will become operational in 2019.

However, the project was finally launched on Wednesday, November 18, 2020.

The new Nissan assembling plant, which will be commissioned in the third quarter of 2021, will act as a catalyst for further industrialization and employment creation

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