By Issah Olegor
The vehicle import industry in Ghana is facing a critical crisis as car dealers and economic experts raise alarm over the sharply rising cost of cars, warning of severe consequences for businesses, consumers, and the broader economy unless swift policy reforms are implemented.
Over the past year, the price of both new and used vehicles in Ghana has spiked dramatically, leaving many prospective car buyers priced out of the market and forcing dealers to operate on shrinking margins.
Several stakeholders have attributed the situation to a combination of a weak local currency, high import duties, inefficiencies at the ports, and a broader economic malaise linked to the country’s heavy reliance on imports.
Background: A Troubled Industry in Transition
Ghana’s vehicle market has long been dominated by imports, with thousands of secondhand cars shipped annually from the United States, Japan, and Europe to feed the local demand.
The hub of this trade, places like Abossey Okai, Lapaz, and Spintex Road in Accra, are filled with dealers who have weathered the ups and downs of global markets and local policies.
However, the latest crisis is proving particularly intense.
Over the last 12 months alone, dealers report that the cost of vehicles has more than doubled, pricing out many middle-income earners.
A car that sold for GH₵65,000 in 2024 now goes for more than GH₵170,000 in 2025.
Currency Depreciation
“The dollar is killing us,” lamented Kwame Sarpong, a seasoned dealer at Abossey Okai.
“We buy cars, pay freight, and clear them all in dollars. But the cedi just keeps falling.”
According to him, this constant depreciation of the Ghanaian currency means they are forced to increase vehicle prices to avoid losses — a reality customers do not always understand.
With the exchange rate volatility, many dealers find it nearly impossible to plan ahead, while potential customers are simply walking away from deals they can no longer afford.
Punishing Taxes
But the exchange rate is not the only factor. Emmanuel Oduro, a dealer in Lapaz with over a decade in the industry, pointed fingers at Ghana’s complex and expensive vehicle tax regime. “You pay duty on everything — the year, engine size, even weight. It’s too much,” he said.
Oduro gave a telling example: a car imported for $6,000 might end up costing as much as GH₵100,000 once it is cleared and ready for resale.
Industry players say there are more than 20 separate charges applied when clearing vehicles, including import duty, VAT, National Health Insurance Levy, and the GETFund levy.
Port Bottlenecks
Dealers like Yaw Boadu, operating around Spintex Road, add that arbitrary and inconsistent customs valuations at Ghanaian ports are exacerbating the crisis.
“Two officers can quote completely different figures for the same vehicle,” he said.
“You don’t know your cost until the car arrives, and that unpredictability is hurting our business.”
Stakeholders are demanding reforms to standardise and streamline customs valuation procedures to bring predictability and fairness to the process.
Expert View: A Broader Economic Problem
Samson Asaaki Awingobit, Executive Secretary of the Importers and Exporters Association of Ghana, offered a macroeconomic perspective on the issue.
He linked rising vehicle prices to Ghana’s trade imbalance and the country’s dependency on imported goods.
“As long as we continue to import everything without increasing our exports, we’ll always feel the squeeze when the cedi weakens,” he explainl.
Awingobit is advocating for more investment in local industrialisation and expansion of domestic car assembly, alongside targeted tax reliefs for public transport and commercial vehicles.
Government Response
The Mahama administration, which returned to power in 2025, promised bold steps to address Ghana’s import challenges.
In his campaign, President John Dramani Mahama pledged to scrap import duties on vehicles and industrial equipment within his first 100 days in office.
This pledge was echoed in the 2025 budget presented by Finance Minister Dr. Cassiel Ato Forson.
However, while there have been some targeted duty reductions — notably for electric buses and vehicles designated for agriculture and industry — a comprehensive implementation plan remains elusive.
The finer details, such as which vehicle categories qualify, have yet to be finalised, leading to growing frustration within the auto industry.
Call for Action
Industry players are now warning that without urgent government intervention, Ghana’s vehicle market could face a dangerous downturn.
A continued decline in sales could lead to widespread job losses, dealership closures, and a significant drop in government revenue from import taxes.
“We need clear, bold policies — not just promises,” said Oduro. “Otherwise, we’ll all be out of business.”
