The Chief Executive Officer of Zonda Tech Ghana Limited, Yang Yang, has made an urgent appeal to the Minister of Finance to reduce taxes on vehicles assembled in Ghana, arguing that such a move is essential to make locally manufactured automobiles affordable for the average Ghanaian.
Speaking ahead of the Channel One TV and Zonda Tech Auto Sale and Expo scheduled for August 13–14, 2026, at the company’s Dzorwulu Showroom, Madam Yang emphasised that high taxation remains a significant barrier to widespread adoption of locally assembled vehicles.
Policy Reversal Threatens Industry Gains
The call comes against the backdrop of a major policy shift that has sent shockwaves through Ghana’s fledgling automotive assembly sector. In the 2026 national budget, Finance Minister Cassiel Ato Forson eliminated the 20 percent Value Added Tax (VAT) exemption on applicable duties for locally assembled vehicles. The zero-rated VAT regime for locally assembled vehicles under the Ghana Automotive Development Policy, which had been in place, was terminated effective December 31, 2025.
The Automobile Assemblers Association of Ghana (AAAG) has warned that this decision could severely undermine the viability of the country’s growing vehicle assembly sector. AAAG President Jeffrey Oppong Peprah cautioned that if the policy is not reversed, the industry could face the loss of more than 400 skilled engineering jobs and the closure of seven assembly plants.
Building a Local Automotive Industry
Zonda Tech Ghana, which entered the automotive sector in 2022, currently assembles GWM and Chery vehicles in the country. The company invested two years in researching the Ghanaian market before launching operations, discovering that between 80 and 85 percent of vehicles on Ghana’s roads were used imports.
Madam Yang, who herself experienced the frustrations of owning second-hand vehicles—describing it as “really like hell”—said the company’s mission has been to provide Ghanaians with reliable brand-new alternatives. Since entering the Ghanaian market over a decade ago, Zonda Tech has expanded into two vehicle assembly plants—one for heavy-duty trucks and another for light-duty vehicles—employing more than 500 people.
With support from the One District One Factory initiative, the company recently completed a $30 million expansion of its plant in Kpone-Katamanso, increasing its capacity to assemble more than 3,000 heavy- and light-duty trucks annually.
Local Assembly Boosts Consumer Confidence
Madam Yang noted that assembling vehicles in Ghana has significantly strengthened consumer confidence, with many Ghanaians now viewing the vehicles as locally produced. “In 2023, 2024, there was an auto policy. So we got some leverage. And then we assembled the vehicles in Ghana,” she said, adding that “Ghanaians also feel that this is the Ghana brand. They started patronizing the GWM”.
She acknowledged that introducing Chinese vehicle brands into a market dominated by Japanese, German, and Korean manufacturers was initially challenging. “When I started, for the first year, it didn’t move fast. But I didn’t give up,” she recounted, explaining that the company allowed customers to test vehicles before making payment—a strategy that helped build trust and attract buyers through referrals.
Government Review Underway
There may be cause for optimism. The government is currently considering restoring the VAT exemption on locally assembled vehicles. Head of Strategic Manufacturing at the Ministry of Trade, Agribusiness and Industry, Kwasi Ofori-Antwi, confirmed during the Citi Business Festival 2026 Roundtable on June 25 that the Ministry of Finance is reviewing the policy. “Government will be reviewing that and we are very hopeful that it will be restored,” he said.
A Vision for Ghana’s Industrial Future
Beyond tax relief, Madam Yang has articulated a broader vision for Ghana’s automotive sector. She has announced plans to establish a training academy—Zonda Academy—to equip Ghanaian youth with skills in automobile technology. The five-storey training centre has been recognised by the Chinese government, which intends to invest heavily in training Ghanaians.
“We are guests in this beautiful country, but our hearts work as citizens. Ghana’s progress is our progress,” Madam Yang has previously stated.
As Ghana’s automotive assembly industry stands at a critical crossroads, industry stakeholders are watching closely to see whether the government will heed calls to restore the tax incentives that have been central to attracting investment and building a competitive local manufacturing sector.
