Importation of over a decade old cars banned in Ghana

Ghana has banned the importation of cars that are more than 10 years old into the country starting October, 2020.

The ban on these cars are part of plans by the government to establish local car manufacturing plant in Ghana and the western part of Africa.

The new law also provides import-duty rebates for companies that manufacture or assemble cars in Ghana, according to the act of parliament obtained Thursday by Urbanreelworld. The embargo will take effect six months after the manufacturing or assembling of new vehicles in Ghana begin under a special government program meant to draw investment.

International car manufacturing companies like Volkswagen AG, Nissan, Toyota Motor Corp, Suzuki Motor Corp and Renault SA are among few car brands striving to penetrate the Ghanaian market. With a population of nearly 30 million people, used and accidents cars make up about 70% of vehicle imports.

The import restrictions could cost the government as much as $143 million in customs revenue in the first three years after implementation, according to parliamentary documents. Used-car sellers offer more affordable deals in a country where auto loans are rare.

The law, signed by President Nana Akufo-Addo on April 30, also bans the importation of cars which have been involved in accidents, which dealers bring in and repair to provide even cheaper options to consumers. The ban on these will take effect from October, regardless of their date of manufacture.

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