Volkswagen and Nissan are planning new car manufacturing plants in Ghana. AFP
Volkswagen and Nissan are planning new car manufacturing plants in Ghana. AFP
Volkswagen and Nissan are planning new car manufacturing plants in Ghana. AFP
Volkswagen and Nissan are planning new car manufacturing plants in Ghana. AFP

VW and Nissan plan car plants in Ghana to tap West African market


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Volkswagen and Nissan are among automakers planning new plants in Ghana to target West Africa’s 382 million people. Their challenge is finding banks that will offer loans to make new cars affordable.

In a country where about 70 per cent of imports are second-hand, new car ownership is rare, said Believe Alorbu, who sells older models shipped from the US at half the price of a new one.

“People will sometimes leave the plastic wrapping on their seats," when they buy new cars, she said at her dealership in the capital, Accra. “Even if the government increases tariffs on used cars, people will still not be able to afford new ones if they don’t get access to financing.”

Less than 5 per cent of new car sales are financed by banks, according to the Ghana Automobile Dealers Association. In some cases, lenders demand employers agree to redirect part of the purchaser’s salary toward the debt, or that the owner take out insurance to cover a default. Interest rates of 22 per cent to 30 per cent also make loans “largely” unaffordable, said Koketso Tsoai, an auto-industry analyst at Fitch Solutions.

Once their facilities are running, VW, Toyota Motor Corp, Nissan, and possibly Renault will need to contend with second-hand cars like those sold by Alorbu. Ghana’s government is trying to make it more attractive with planned import duties on second-hand cars of 35 per cent, from 5 per cent to 20 per cent, and tax breaks that improve as the companies move from assembly to local production. It has also pledged to promote regional exports.

“We don’t look at it only for today,” Nissan Africa chairman Mike Whitfield said by phone from Cairo. “We continue to see Africa as the last frontier left in the automotive market, West Africa being a key part of it.”

About 10 per cent of West Africa’s population are able to spend more than $11 (Dh40.39) a day, according to data compiled by World Data Lab. It is this group that the industry is targeting on a continent that adds some 10m new consumers annually. By 2030, Africa’s middle- and upper-income class is expected to exceed 300m of the world’s 4 billion consumer market, the data shows.

Standard Bank Group, Africa’s largest lender, is also preparing for future growth by replicating its South African car-financing business in other parts of the continent, including Ghana.

About three quarters of auto loans still go to companies, Patrick Koduah, head of vehicle and asset finance at the company’s Stanbic Ghana unit, said in an interview. “There’s a huge opportunity to grow personal demand.”

About 30,000 passenger vehicles were imported into Ghana in 2018, according to estimates from Fitch Solutions. Ghana had 7,073 new vehicle registrations in 2018, of which 4,268 were passenger cars, according to the International Organisation of Motor Vehicle Manufacturers.

While the government has said its auto-incentives program would include the creation of an asset-based vehicle financing component, a trade ministry spokesman couldn’t provide details on how it would work.

Pan-African lender Ecobank Transnational said in an email that the average car loan in Ghana amounts to $30,000. Banks typically demand a high down payment and limit loans to no longer than five years if they do grant credit, while dealers sometimes allow buyers to spread repayments over six months.

More than 90 per cent of new vehicle sales in South Africa, the continent’s biggest market, are probably financed, Thomas Schaefer, the head of Volkswagen’s local unit, estimated. The country had a penetration rate of 132 passenger cars per 1,000 people in 2019, compared with 22 per 1,000 people in Ghana, according to Fitch Solutions.

“If I would take out the financing options in South Africa, our market would disappear,” Mr Schaefer said.

The Wolfsburg-based carmaker plans to start a ride-hailing service in Accra, modeled after a similar one in the Rwandan capital, Kigali, to ensure its output is absorbed.

“The assumption is that in Africa, out of the more than 1bn people, there are only about 100m people who can afford a new car, but you may have a couple 100m people who need to go from A to B and a bit of money in their pocket,” said Mr Schaefer. “You need to tap into this market.”

Nissan sees its assembly plant starting by the end of the year, depending on when Ghana’s auto-policy is signed into law. Volkswagen plans to start by April. Toyota, which described Ghana as “an extremely important market in West Africa,” declined to share details about its strategy.

Ghana won’t be the first country to position itself as a gateway to West Africa. Nigeria announced a very similar policy in 2013. However, after a change in government and years in the legislative system, President Muhammadu Buhari rejected the bill in July last year. Automakers have also signed agreements with Ivory Coast’s government.

“It is not about who should be the hub, it’s about who offers the best deal,” said Chris Ndala, managing director of CICA Motors Liberia, a subsidiary of the French group CFAO.

The car companies are beginning small in Ghana, with 5,000 units a year or less, and are expected to partner with local firms.

“We’ll all go as the business and the market goes,” Nissan’s Mr Whitfield said. “The critical thing is that it’s starting.”

Alorbu, the second-hand dealer, doesn’t see the used-car business getting displaced anytime soon.

“They make it sound like used-car dealers are the enemy, but we are helping the consumer,” she said. “If the government is not ready or willing to provide financing, selling new cars will be a problem.”

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Ireland (15-1):

Ireland (15-1): Rob Kearney; Keith Earls, Chris Farrell, Bundee Aki, Jacob Stockdale; Jonathan Sexton, Conor Murray; Jack Conan, Sean O'Brien, Peter O'Mahony; James Ryan, Quinn Roux; Tadhg Furlong, Rory Best (capt), Cian Healy

Replacements: Sean Cronin, Dave Kilcoyne, Andrew Porter, Ultan Dillane, Josh van der Flier, John Cooney, Joey Carbery, Jordan Larmour

Coach: Joe Schmidt (NZL)

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1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

JOKE'S%20ON%20YOU
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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
Chinese Grand Prix schedule (in UAE time)

Friday: First practice - 6am; Second practice - 10am

Saturday: Final practice - 7am; Qualifying - 10am

Sunday: Chinese Grand Prix - 10.10am

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
The specs

Engine: 4-litre twin-turbo V8

Transmission: nine-speed

Power: 542bhp

Torque: 700Nm

Price: Dh848,000

On sale: now

The%20National%20selections
%3Cp%3E%3Cspan%20style%3D%22font-size%3A%2014px%3B%22%3E6pm%3A%20Go%20Soldier%20Go%3Cbr%3E6.35pm%3A%20Man%20Of%20Promise%3Cbr%3E7.10pm%3A%20Withering%3Cbr%3E7.45pm%3A%20Mawj%3Cbr%3E8.20pm%3A%20Falling%20Shadow%3Cbr%3E8.55pm%3A%20Law%20Of%20Peace%3Cbr%3E9.30pm%3A%20Naval%20Power%3Cbr%3E10.05pm%3A%20The%20Attorney%3C%2Fspan%3E%3C%2Fp%3E%0A
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
The Bio

Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride

She is the eldest of 11 children, and has four brothers and six sisters.

Her dream is to meet with all of her friends online from around the world who supported her work throughout the years

Her favourite meal is pizza and stuffed vine leaves

She ams to improve her English and learn Japanese, which many animated programmes originate in

UAE currency: the story behind the money in your pockets
If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

The%20Kitchen
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EDaniel%20Kaluuya%2C%20Kibwe%20Tavares%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EKane%20Robinson%2C%20Jedaiah%20Bannerman%2C%20Hope%20Ikpoku%20Jnr%2C%20Fiona%20Marr%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%C2%A0%3C%2Fp%3E%0A
ENGLAND SQUAD

Goalkeepers Henderson, Johnstone, Pickford, Ramsdale

Defenders Alexander-Arnold, Chilwell, Coady, Godfrey, James, Maguire, Mings, Shaw, Stones, Trippier, Walker, White

Midfielders Bellingham, Henderson, Lingard, Mount, Phillips, Rice, Ward-Prowse

Forwards Calvert-Lewin, Foden, Grealish, Greenwood, Kane, Rashford, Saka, Sancho, Sterling, Watkins 

Dengue%20fever%20symptoms
%3Cul%3E%0A%3Cli%3EHigh%20fever%3C%2Fli%3E%0A%3Cli%3EIntense%20pain%20behind%20your%20eyes%3C%2Fli%3E%0A%3Cli%3ESevere%20headache%3C%2Fli%3E%0A%3Cli%3EMuscle%20and%20joint%20pains%3C%2Fli%3E%0A%3Cli%3ENausea%3C%2Fli%3E%0A%3Cli%3EVomiting%3C%2Fli%3E%0A%3Cli%3ESwollen%20glands%3C%2Fli%3E%0A%3Cli%3ERash%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3EIf%20symptoms%20occur%2C%20they%20usually%20last%20for%20two-seven%20days%3C%2Fp%3E%0A
'Hocus%20Pocus%202'
%3Cp%3EDirector%3A%20Anne%20Fletcher%3Cbr%3E%3Cbr%3EStars%3A%20Bette%20Midler%2C%20Sarah%20Jessica%20Parker%2C%20Kathy%20Najimy%3Cbr%3E%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
RESULTS

5pm: Maiden (PA) Dh80,000 1,200m
Winner: Shafaf, Sam Hitchcott (jockey), Ahmed Al Mehairbi (trainer)
5,30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,200m
Winner: Noof KB, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Listed (TB) Dh380,000 1,400m
Winner: Taamol, Jim Crowley, Ali Rashid Al Raihe
6.30pm: The President’s Cup Group One (PA) Dh2,500,000 2,200m
Winner: Rmmas, Tadhg O’Shea, Jean de Roualle
7pm: Arabian Triple Crown Listed (PA) Dh230,000 1,600m
Winner: Ihtesham, Szczepan Mazur, Ibrahim Al Hadhrami
7.30pm: Handicap (PA) Dh80,000 1,400m
Winner: AF Mekhbat, Antonio Fresu, Ernst Oertel

Key features of new policy

Pupils to learn coding and other vocational skills from Grade 6

Exams to test critical thinking and application of knowledge

A new National Assessment Centre, PARAKH (Performance, Assessment, Review and Analysis for Holistic Development) will form the standard for schools

Schools to implement online system to encouraging transparency and accountability