2026 budget impact analysis on ICE and EV businesses

By Theophilus LAMPTEY

The 2026 Budget tilts Ghana towards supporting e-mobility (assembly deals, pilot solar EV station, increased in power generation, expansion in electricity access, draft regulations for EV Charging, green finance measures and expansion in road networks) while also enacting VAT/other tax reforms and tighter digital tax/customs enforcement through crackdown on import fraud and stricter control of import related transfers.

Additionally, the Budget introduces new technical regulations for petroleum quality, electrical products and imported vehicles. These reforms are expected to change the cost/compliance environment for vehicle importers, assemblers, service providers and consumers.

On the Economic front, Improved borrowing cost stemming from declining yields and favorable macroeconomic factors is expected to improve access to cheap finance for businesses in the EV & ICE space.

Companies involved in EV assembly, component manufacture, charging/solar solutions, and those that can capture green finance (Free Zone benefits) would benefit whilst small businesses face increased cost of regulatory compliance.

This article examines the impact of proposed government policies in the 2026 budget on businesses operating in the Internal Combustion Engines (ICE) and Electric Vehicles (EV) space and offers ways for those businesses to take advantage of government policies outlined in the 2026 budget to promote growth and stay competitive.

WAY FORWARD

Product compliance – Ensure products comply with GSA technical expectations for vehicles/electrical/petroleum products.

Reach out to Free Zones / Ghana Investment Promotion Centre – evaluate Afienya EPZ/Free Zone benefits for lower costs of EV assembly/parts opportunities.

Engage with the assembly pipeline — pursue partnerships or Supplier status with Shenzhen New Gecko and Cherry International for EVs and other components;

Partnerships – Build partnerships with solar charging installers and battery suppliers to reduce dependency on national grid.

Apply for green finance / grants — explore possible access to cheap funds under the Ghana Green Finance Taxonomy and the Green Climate Fund.

Sinking Fund: Set-up a sinking fund to accumulate the benefit from the abolished 1% COVID Levy. This could be used to fund other initiatives.

 

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