The President said the establishment of the plant had been made possible by the conscious initiative of his administration to attract investment in the automotive sector under the Ghana Automotive Development Policy initiated by the Government.
He added that the government will pursue policies that would stimulate patronage of locally assembled vehicles.
Kia is the fourth largest global vehicle manufacturer. The company joins other global car brands including Toyota-Suzuki, Nissan, Volkswagen, Peugeot, Sinotruck, and Ghana’s indigenous brand Kantanka, who have already established assembly plants in the country.
Noting that the critical component for harnessing the full potential of the automotive industry was a demand for assembled vehicles, the President said the government was developing policies that would enable ordinary citizens to acquire locally assembled vehicles.
“As you may all be aware, I have directed the Chief of Staff at the office of the President, the prioritisation of the procurement of domestically assembled vehicles by state institutions to fulfill the government’s commitment to patronising made-in-Ghana products.
“We are, however, mindful of the fact that the state alone cannot purchase the sufficient numbers of vehicles to be produced from our assembly plants and will thus require Ghanaians also patronise these vehicles”, he said.
Consequently, the government, the President disclosed, would soon roll out an asset-based vehicle financing scheme, as pertained in other developed climes, to stimulate the demand for domestically assembled vehicles.
“We have also shown commitment by implementing the zero-rating of VAT on the sale of domestically assembled vehicles. This means that there is no VAT on the sale of domestically assembled vehicles even to the end user to make domestically assembled vehicles affordable,” he said.
President Akufo-Addo told the gathering that he had charged the Finance Minister, Ken Ofori-Atta to submit to Parliament the required legislative instruction proposing the implementation start date of the Customs Amendment Act (2020).