The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare on Friday met with the Suame Magazine Industrial Development Organization (SMIDO) at Kumasi in the Ashanti Region.
The Minister’s engagement was in line with President Mahama’s promise to remove the law banning the importation of salvaged vehicles into the country.
The meeting was also intended to seek views from industry players and assure them of the government’s commitment to find amicable solutions to the challenges they faced in the automobile industry.
The amendment of the law will allow the importation of salvage vehicles into the country on the ground that it was negatively impacting the artisans in the industry and the transport business.
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 argued that the law acts as a hindrance to their businesses.
Addressing the various Associations in the automobile industry within the Suame Magazine enclave, the minister revealed that she has had engagements with dealers in brand news cars, secondhand vehicles and assemblers to address their concerns ahead of the amendment of the law.
The Minister assured SMIDO of government’s commitment to creating an enabling business environment to support their growth of the automobile industry in Ghana, adding that the reversal of the law will go a long way to make Ghana’s auto industry a major hub in the sub region which will contribute to the country’s economic growth.
Mr. 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 increased to discourage us from importing them,” he said.
In addition, Mr. Anthony Oppong, Chairman of GUTA in the Ashanti Region, said, “We are pleased with the decision by the government, 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 our businesses.