Trade Minister urges local sourcing for AfCFTA benefits

Mrs Elizabeth Ofosu-Adjare, Minister of Trade, has urged heavy-duty automotive firms in Ghana to source local components to benefit from the African Continental Free Trade Area (AfCFTA).

“To trade under AfCFTA, you must prioritise locally sourced materials, including tyres and batteries, to qualify for duty-free trade under the agreement’s rules of origin,” she said.

Mrs Ofosu-Adjare made the call during a working visit to Zonda Tec Ghana Limited, a leading assembler and distributor of light and heavy-duty vehicles, in Tema on Thursday evening.

She expressed confidence that increased local sourcing would reduce dependence on imports, cut material costs, and improve supply chain efficiency, positioning Ghana as a competitive exporter.

The Minister disclosed that government is reviewing the country’s automotive policy to include heavy-duty vehicles such as trucks, in line with the AfCFTA implementation.

According to the International Trade Administration of the United States, Ghana imports about 100,000 vehicles annually.

Ghana’s Automotive Development Policy, introduced in 2019, aims to promote the production of affordable new vehicles and reduce reliance on used ones.

Mrs. Ofosu-Adjare said the ongoing reforms could make Ghana, host of the AfCFTA Secretariat, a hub for automotive trade on the continent, home to 1.3 billion people.

“This revision aims to incentivise companies like Zonda to scale production while ensuring compliance with the Ghana Standards Authority regulations,” she said in response to a question from the Ghana News Agency.

She commended Zonda for employing over 500 Ghanaians and urged the company to triple that number by adopting the government’s 24-hour economy initiative through a three-shift model.

The Minister endorsed Zonda’s plan to establish a training school, noting its potential to equip Ghanaian youth with practical skills and ensure long-term industry growth.

She said, acting on the President’s instructions, she would lead a delegation to China to attract investment into Ghana’s auto sector and urged Zonda to send more Ghanaian workers to China for training.

“In the next decade, 90 per cent of staff here should be Ghanaians,” she said, advocating reduced reliance on foreign labour.

“Buying ‘Made in Ghana’ sustains jobs, generates tax revenue, and transitions our economy from import dependence to export-led growth,” she added.

Ms. Yang Yang, Managing Director of Zonda, commended Ghana for its “very positive environment” that enabled companies like Zonda to thrive and called for further government support.

“We are enjoying the auto policy,” she said, citing the presence of assembly plants by Toyota, Volkswagen, Nissan, Suzuki, KIA, and Mahindra, and called for better regulatory frameworks to support heavy-duty vehicle assemblers.

On technology transfer, Ms Yang said Chinese engineers have been training local workers at the company’s centre in Ghana for the past six years.

“This year, we have been sending Ghanaian engineers to China for training,” she said.

“Today, our employees are skilled workers, technicians, and they’re now expensive to maintain,” she added.

Ms. Yang listed bulldozers, graders, excavators, tipper trucks, trailer heads, and oil tankers among the heavy equipment Zonda assembles in Ghana, in addition to pickups and SUVs.

Source: GNA

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