Ghana applies the lowest import duties on vehicles in sub-Saharan Africa – Fitch

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Ghana boasts of reduced tariffs on vehicles of about 31% in sub-Saharan Africa, as well as a favorable regulatory environment, which will facilitate the task of automakers in this market, said the company. International rating agency Fitch.

"Ghana also has a large driving-age population with a score of 62.9 out of 100, which increases the country's long-term reward potential and highlights the growth potential of car manufacturers entering the market. said Fitch in his latest report In Sub-Saharan Africa: rewards are too low to justify risk. "
Mauritius ranked first, followed by South Africa in second place and Botswana in third place, ranking among the top three places in the risk / sales performance index ( RRI) of Fitch Autos for the sub-Saharan region.

However, they are struggling to rank among the top 50 countries in the world, with Mauritius only able to rank 69th.

Fitch said the strengths of these countries lie in their low-risk business environments, their developed auto markets, their relatively high purchasing power, and their good-quality road infrastructure.

Ghana is on the rise

With a risk / return index of 37.7, Ghana ranks fourth in the sub-Saharan region and is the fourth-least-risk automotive market in the region and the world. weakest in the ECOWAS subregion.

The strengths of the country, said Fitch, resides in its globally low risk environment, which surpbades the global average of 50.0%, especially in terms of political risk.

"We believe that Ghana's political stability is the linchpin of the future of its domestic auto production industry. In our RRI Autos Sales, in the categories of the Short Term Political Risk Index and the Long Term Political Risk Index, Ghana ranks by far the best among the countries in the world. West Africa we cover and stands in second place in the wider region of sub-Saharan Africa. "

This Fitch stressed the stability of the country's political outlook for the next two years. In the long-term political risk index category of its IRR, Ghana scored 70.2 out of a maximum of 100, compared to a regional average of 17.4 for West Africa ( excluding Ghana), indicating the stability of the country's political environment over the next five years. 10 years, giving Ghana a distinct advantage over its operating environment for automakers compared to its regional competitors.

Tanzania, Kenya and Uganda followed, respectively, 5th, 6th and 7th, followed by Nigeria in 9th place.

Under the RRI Rewards pillar, the SSA region outperforms the global average of 50.0% in two categories, namely "vehicle sales growth, five-year average forecast" and "driving-age population".