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Business News of Tuesday, 31 July 2018

Source: Graphic.com.gh

Two auto firms to establish assembling plants in Ghana

Two automobile companies have requested permission from the government to set up their assembling plants in the country to assemble their brand of vehicles for the domestic and West African markets.

Their permission was contained in a memorandum of understanding (MoU) separately submitted to the government for review and approval.

The Senior Minister, Mr Yaw Osafo Maafo disclosed this at the GRAPHIC BUSINESS/Stanbic Bank Breakfast Meeting on manufacturing on the theme: “Unlocking Economic Growth Through Manufacturing - Cost Quality And Competitiveness."

The forum aimed to help shine some light on the manufacturing subsector, whose fortunes have nosedived in recent times.

Speaking on how government was helping to reverse the challenges, Mr Maafo said macroeconomic stability was key in the march towards industrialisation.

This, he said informed the decision to prioritise fiscal discipline, which has resulted in increased interest from investors in the economy.

An example, he said was the two big automobile assembling plants that have expressed interest in setting up in the country.

Mr Maafo explained that included in the MoU that was currently being reviewed was a request that "of course, government buys a certain amount of the cars."

He added that government would soon approve the agreement to allow for the setting up of the plants.

When approved, the two firms will add to indigenous firm, Kantanka Automobile, which has been assembling its brand of vehicles for the local and international market.