SSA: Ghana still the 5th most attractive automobile market in sub-region

Ghana has maintained its position as the fifth [5th] most attractive automobile market in Sub Saharan Africa sub-region.

This is contained in Fitch Solutions’ July 2022 Sub-Saharan Africa’s Auto Sales report.

Ghana, per the report and as measured by the Risk Reward Index, scored 33.6 points helping the country to retain its position as the fifth [5th] most attractive automobile market in the sub-region.

First, in the sub-region was South Africa as the country maintained its 1st position as the most attractive auto market in Sub Saharan Africa, followed by Mauritius and Botswana in second and third places respectively.

Fitch Solutions in the report, however said, Ghana’s underdeveloped road infrastructure remains a deterrent for potential investment in the automobile industry as the country scores 16.9% under its ‘quality and extent of transport network’ indicator, underperforming the SSA region’s average score of 21.6% under the same indicator.

“But, progress is being made with regards to upgrading and developing the country’s road infrastructure with the recent commissioning of a four-tier interchange in Accra underscoring the progress being made to upgrade the country’s roads”, Fitch said.

The report however highlighted the need for Ghana to increase vehicle sales growth going forward.

“Ghana’s low levels of vehicle ownership rates highlighted by a score of 11.3% under our ‘vehicle ownership per 1,000 inhabitants’ indicator signals further room for vehicle sales growth going forward as rising incomes lead to first-time buyers entering the market for vehicles”.

“Furthermore, an age limit on imported vehicles permitted into the country will develop a local new vehicle sales market going forward as the flow of used vehicle imports slows to the benefit of newer vehicles”, it added.

Meanwhile, the country managed to outperform its regional peers under Fitch Solutions short- and long-term political risk scores in its Risk Reward Index, scoring a respective 51.2% and 70.2% under these indicators.