Ghana maintained its position as the fifth most
attractive automobile market in Sub Saharan Africa (SSA) region.
According to the July 2022 Sub-Saharan Africa’s
Auto Sales report by Fitch Solutions, a developing automotive sales environment
amid a favourable political risk outlook has enabled policy certainty in the
country.
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.
However, the report said, Ghana’s underdeveloped
road infrastructure remains a deterrent for potential 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”, it mentioned.
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, South Africa maintained its 1st
position as the most attractive auto market in Sub-Saharan Africa, followed by
Mauritius and Botswana.
This signaled further room for vehicle sales
growth going forward, as rising incomes lead to first-time buyers entering the
market for vehicles.
Meanwhile, South Africa maintained its 1st
position as the most attractive auto market in Sub Saharan Africa, followed by
Mauritius and Botswana.
COUNTRY
RRI RANK
South Africa
50.7 1st
Mauritius
50.1 2nd
Botswana
44.7 3rd
Gabon 34.6 4th
Ghana 33.6 5th
Tanzania 32.6 6th
Kenya 32.3 7th
Source: Joy Business