To fulfill its commitment to reversing the ban on the importation of salvaged vehicles in Ghana, the Ministry of Trade, Agribusiness, and Industry has begun engaging stakeholders.
In March 2020, Parliament passed a law prohibiting the importation of salvaged vehicles into Ghana.
The intention behind this law was to provide incentives for automotive manufacturers and assemblers registered under the Ghana Manufacturing Development Programme.
However, artisans and importers argue that the law acts as a disincentive to their businesses.
During the 2024 campaign season, John Mahama, the Presidential candidate for the National Democratic Congress, pledged to reverse this law.
In line with this proposed amendment, the Ministry of Trade, Agribusiness, and Industry is consulting with stakeholders regarding the issue.
Sector Minister, Elizabeth Ofosu-Adjare informed artisans and importers of the government’s commitment to creating an enabling business environment to support their growth.
“The promise was to begin the reversal of the law within 120 days of assuming office, but we are nearing the end of that period. The government is actively engaging with artisans and importers to find the best ways to empower the Suame Magazine area to fulfill its role effectively. This area is a one-stop shop for automobiles, and as a country, we need to focus on the people here,” she said.
Leaders of artisans and importers welcomed the initiative, but they raised several important concerns.
Kofi Adu, Chairman of the Suame Magazine spare parts dealers, stated, “the engagement is refreshing, but we don’t want a situation where the law is reversed, and duties on salvaged vehicles increase to discourage us from importing them.”
Additionally, Anthony Oppong, Chairman of GUTA in the Ashanti Region, said, “We are pleased with the decision, but the government must ensure that the imported vehicles meet certain safety standards to protect Ghanaians. We have also informed the Minister about the need to stabilize the local currency against major foreign currencies to strengthen businesses.”
The Ministry believes that with adequate support, the Suame Magazine enclave will significantly contribute to Ghana’s economic growth.
