A Political and Media Analyst, Franklin Asare Donkor, has stated that the decision by German car manufacturing company Volkswagen (VW) to establish an assembly plant in Ghana is in the right direction towards enhancing competition within the country’s automobile sector.
On Thursday, August 30, 2018, German Chancellor Angela Merkel together with a business delegation from Germany, paid a visit to Ghana.
At a meeting with the Minister for Trade and Industry, Alan Kyerematen, in Accra, Volkswagen Africa boss Thomas Schaefer announced that his company will establish an assembly plant in Ghana.
As a result, Volkswagen and the government signed a Memorandum of Understanding to that effect and the company is expected to produce some 5, 000 units of vehicle annually.
According to Mr. Donkor, who was speaking on TV3 New Day on Saturday, September 1, the move will further boost the automobile industry in Ghana, and also ensure economic growth.
He dismissed criticisms that the presence of Volkswagen in the country will affect the automobile industry negatively.
He stated that the move would rather enhance the automobile industry by putting indigenous Ghanaian companies on their toes to do more in terms of satisfying their customers.
He made specific reference to local Ghanaian automobile company, Kantanka, which many believe will be affected by operations of VW in Ghana.
“The assertion that VW is coming to run down Kantaka is misplaced, the competition will rather benefit the consumer who will make their choice based on their budget.”
He said comments that the introduction of Volkswagen will run down the local automobile industry is misplaced.
Mr. Donkor noted that although Kantanka has not received the necessary support from government, it is not enough reason to prevent others from investing in the automobile industry.
“We cannot say we will not allow foreign companies to come do business in our local automobile industry because our industry is not at the stage where we want it to be,” he noted.
According to him, it is good for developing countries like Ghana to have global giants make investments in their country.
By Irene Amesimeku| 3news.com| Ghana