Mahama Commissions Zonda Tec Assembly Plant as Gov’t Finalises VAT Incentives for Auto Industry

Zonda Tec has launched the phase III of its vehicle assembly plants in Ghana, significantly increasing annual production output to 3,000 vehicle units, aiming for the unified regional market under the African Continental Free Trade Area (AfCFTA) agreement.

Zonda is first to introduce electric trucks into the Ghanaian market. This plant, however aims to assemble heavy and light duty vehicles, which will double employment at the company and create about 3,000 indirect jobs for Ghanaians, across logistics, maintenance, component supply, distribution and other supporting industries.The new plant will assemble sports utility vehicles (SUVs), pickups, electric vehicles (EVs) and light trucks from four brands—Great Wall Motors (GWM), Chery, Forland and SinoTruck locally for use in country and export into the sub-regional market.The Chief Executive Officer of Zonda Tec, Yang Yang, said the facility is a multipurpose assembly line that can be adjusted to assemble different vehicle types. “Once we finish assembling the SUVs, then we can adjust the assembly line to assemble the pickups, and then we can adjust the assembly line to assemble EVs, also the light commercial vehicles,” she said.

She noted that Ghana’s youth account for 70 percent of the population, translating into over 24 million young people, and said the assembly plant could bring hope through jobs and skills.She added that the company has established the Zonda Tech Academy to train young Ghanaians in automotive skills, with some engineers sent to China for training and certification.Commissioning the plant, President John Dramani Mahama announced that the Ministry of Finance and the Ministry of Trade and Industry are finalising incentives for semi-knockdown automotive assembly in the country.

“We don’t want manufacturers who bring their old car, they just remove the steering wheel and the tyres, and they bring it here, put the tyres and put the steering wheel, and say we’ve assembled this vehicle in Ghana. A certain percentage of assembling must take place locally for you to qualify for the VAT exemption,” he said.He said the policy would specify a minimum percentage of local assembly required to qualify for VAT exemptions. The specifics of the threshold, he said would be announced in the upcoming budget.The President said government aims to deepen value addition by promoting local manufacture of automotive components including batteries, tyres, wiring harnesses, seats, glass, plastics and metal parts. This, he said, would create stronger linkages between large manufacturers and Ghanaian small and medium enterprises.

To boost demand, President Mahama said government would collaborate with banks and manufacturers to create long-term credit instruments to allow salaried workers to buy locally assembled vehicles and pay monthly.He noted that public sector workers such as teachers, nurses and doctors, as well as private sector executives, would benefit.According to Mrs. Yang, Zonda Tec is already collaborating with over 17 banks to provide financing to consumers.On electric mobility, the President said the Ministry of Energy and Green Transitions is developing an EV policy, which would promote solar charging.“The sunlight is free of charge, and so we want to promote the use of solar for charging,” he said.The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, described the commissioning as a milestone in Ghana’s automotive industry. She said the Ghana Automotive Industry Council was designed to attract investments of this kind.The minister further noted that the recently approved Ghana Automotive Component Manufacturing Company would strengthen the ecosystem.She acknowledged that competition for automotive investment is intensifying across Africa, citing Morocco, South Africa, Rwanda and Kenya.“To study these experiences, not to imitate them, but to learn what has worked, what has not worked, and how Ghana can chart its own path with greater speed and confidence,” she said.President Mahama cited global automotive industry’s value at  US$2.6 trillion, with global vehicle production at about 96.4 million units, up from 92.7 million the previous year, and sales approaching 100 million.He indicated that Asia now produces over 60 percent of the world’s vehicles.While in Africa, vehicle sales increased by more than 20 percent in 2025, the fastest regional growth rate, yet the continent manufactures barely 1 percent of global vehicle output despite being home to almost one-fifth of humanity.The President said the African Continental Free Trade Area (AfCFTA) 1.4 billion people presented an extraordinary opportunity, indicating that Ghana’s ambition is to become the automotive manufacturing hub of West Africa.He said government would maintain a stable investment climate, improve infrastructure, simplify regulatory procedures, strengthen industrial incentives and invest in technical education.In return, he expects industry to deepen localisation, expand technology transfer, develop new suppliers and use Ghana as a manufacturing base for exports into Africa.Mrs. Yang said Zonda Tec plans to start component manufacturing after training enough engineers.“After I train enough engineers, I can start my component factory, like the engines, the gearbox, the body of the vehicle, even the tyres. All these things, they need to be manufactured in Ghana. Then Ghana will really be a manufacturing hub for the West African region,” she said.The plant is expected to support agricultural logistics, mining, construction and regional trade, according to the President, who said the vehicles would help carry Ghana’s industrial transformation forward.

Source: thebftonline.com