Call for Financing Framework to Enhance Local Vehicle Assembly in Ghana
Mr. Jeffrey Oppong Peprah, CEO of Volkswagen Ghana, advocates for a financing framework to enhance the patronage of locally assembled vehicles, citing cash purchases as a significant barrier. He stresses the need for lower interest rates through government-incentivized loans to facilitate wider access and stimulate the automotive market, ultimately bolstering economic growth in Ghana.
Mr. Jeffrey Oppong Peprah, Chief Executive Officer of Volkswagen (VW) Ghana, has emphasized the necessity of establishing a financing framework aimed at increasing the patronage of locally assembled vehicles. During the launch of the new Volkswagen Touareg in Accra, he pointed out the challenges posed by market dynamics, particularly the predominance of cash purchases that limit access to new vehicles.
The newly unveiled Volkswagen Touareg is equipped with a robust 3.0 TSI V6 engine that delivers 250 kW of power, coupled with an 8-speed automatic transmission and 4motion all-wheel drive. Its striking design includes IQ Light HD matrix headlights, LED taillights with dynamic indicators, and an illuminated Volkswagen logo tailored for various terrains in Ghana.
Mr. Peprah stated the crucial need to transition from a cash-based vehicle purchasing model, highlighting that many consumers save for extended periods before making a purchase. He noted that the current high-interest rates for traditional loans, exceeding 24 percent, severely restrict the purchasing capacity of the average Ghanaian, leading them to favor imported used vehicles.
The CEO mentioned that the Automobile Association of Ghana is actively collaborating with the government to establish a loan system incentivized by the government for vehicle purchases. The goal of this initiative is to secure lower interest rates, thereby making locally assembled vehicles more accessible to a larger audience.
He urged a partnership between the Ghanaian government, banks, and insurance companies to create a more affordable financing option for prospective vehicle buyers. This initiative has the potential to stimulate the entire automotive value chain, generate employment, and contribute to economic growth in Ghana.
Mr. Peprah expressed that such a facility would enhance buying power, allowing consumers to make longer-term payments, which would ultimately drive sales volumes in the automotive sector. Furthermore, he emphasized the importance of reducing reliance on imported salvage vehicles, which pose both safety and environmental hazards.
In conclusion, Mr. Peprah expressed confidence that a collaborative effort involving the government, financial institutions, and the private sector would lead to the formulation of a sustainable and effective vehicle financing framework, thereby benefiting the Ghanaian economy and its citizens. The establishment of such a framework is crucial for increasing the accessibility of locally assembled vehicles while stimulating economic growth.
In summary, the establishment of a financing framework advocated by Mr. Jeffery Oppong Peprah is crucial in enhancing access to locally assembled vehicles in Ghana. This initiative is expected to stimulate the automotive market, create jobs, and promote economic growth while alleviating reliance on unsafe imported used vehicles. The collaboration between government and private stakeholders is essential for the success of this agenda, ultimately benefiting the Ghanaian populace.
Original Source: gna.org.gh
