Today marks the International Day of Clean Energy. The U.K. – Ghana Jobs and Economic Transformation (JET) programme joins the global community to spotlight the vast potential Ghana holds to chart a cleaner energy future – one that boosts industrial competitiveness, safeguards the environment, creates high-quality jobs, and strengthens the country’s ambition as a leading automotive hub in West Africa, in line with Sustainable Development Goal (SDG) 7.
As champion of the Ghana Automotive Development Policy, we respectfully call on Her Excellency the Vice President of the Republic of Ghana, Professor Jane Naana Opoku-Agyemang, together with the Hon. Minister of Trade, Agribusiness and Industry, to lead early, coordinated adoption of measures outlined below. These actions will help strengthen Ghana’s position as a competitive clean-energy hub. Their leadership can power a just, inclusive transition that reflects Ghana’s industrial ambitions and places women at the forefront of transformative change.
Clean Energy Day, established by the United Nations and observed annually on 26 January, calls for climate action in the fight against climate change, increased universal access to affordable and sustainable energy to stimulate economic opportunities and support achieving SDG7.
“Ghana’s automotive sector has the potential to be a powerful driver of clean energy transition, industrial growth and job creation. This is a part of our partnership approach with Ghana on mutual economic growth, through policies and investments that accelerate cleaner transport, strengthen local manufacturing, and deliver economic opportunities that are inclusive and sustainable.”
Terri Sarch – Development Director, British High Commission, Accra (UK Foreign, Commonwealth and Development Office – FCDO)
The Automotive Sector – a Catalyst for Clean Energy and Growth
For Ghana, progress in clean energy is not only central to achieving its unconditional 15% reduction in greenhouse gas emissions (GHG) by 2030 as enshrined in Ghana’s Nationally Determined Contribution (NDC) under the Paris Agreement, but also a massive economic and social opportunity for its citizens.
Transportation is a leading source of GHG emissions in Ghana, contributing to nearly half of all energy-related emissions and increasing by nearly 15% from 2015 to 2023. Of the three major drivers behind this rise – reliance on fossil fuels, ageing vehicle population, and rapid urbanisation – two are directly linked to the automotive sector.
In addition, air pollution has been identified as the second leading cause of deaths in Ghana, after HIV/TB/Malaria. The economic cost to the nation is estimated at approximately US$3 billion per annum, representing about 4% of GDP. The Intergovernmental Panel on Climate Change (IPCC) warns that greenhouse gas emissions must fall by 50–80% by 2050 to avert catastrophic warming. It is therefore imperative to reflect on how the automotive sector can become one of Ghana’s most powerful catalysts for climate action and economic growth.
The Baseline and Current State of Play
According to estimates, there are 3.2 million vehicles in operation in Ghana, with an average age of 14 years. Annual vehicle imports stand at about 100,000 units per year, of which 80% are used vehicles – often older than 10 years, inefficient, and highly polluting. Uptake of electric vehicles (EVs) is on the ascendency, with a rapidly expanding electric two- and three-wheeler base, supporting the government’s 24-hour economy ambition.
Ghana’s transition to a modern, low-emission vehicle fleet is progressing slowly and could take decades without targeted intervention. To accelerate progress, promote jobs, and attract investment, the Ministry of Trade, Agribusiness and Industry – with support from the UK-Ghana JET Programme – completed a 2025 mid-term review of the Ghana Automotive Development Policy.
The programme, which unlocked US$98 million in investment from global car makers such as Volkswagen, Toyota, KIA, Nissan and Hyundai – some in partnership with domestic firms including Kantanka – facilitated the establishment of seven state-of-the-art assembly facilities with a combined installed capacity of 140,000 units per year. While this capacity could meet domestic demand and support exports to regional markets, actual demand for new vehicles remains far below capacity, limiting the sector’s full impact.
Unlocking Demand Through Finance
Affordability remains a key driver of demand for locally assembled new vehicles, including EVs. However, access remains limited due to the absence of a structured asset-backed financing scheme. The predominance of cash-based vehicle purchases significantly constrains access to clean mobility solutions, particularly for underserved and low-income populations.
Three Practical Actions for Government Consideration
- Activate clean energy provisions in the GADP:
To stimulate strategic investments, competitive manufacturing, and a transition to components manufacturing, government should fast-track approval of the revised GADP, enabling electric vehicle and two- and three-wheeler manufacturers to participate fully in the programme. - Support implementation of vehicle financing schemes:
Leverage demand for locally assembled new vehicles, including electric and two- and three-wheelers, particularly for underserved markets, through asset-based financing mechanisms in collaboration with participating financial institutions. - Boost confidence and demand for assembled vehicles:
As the largest buyer of vehicles, government should prioritise procurement of locally assembled vehicles, working closely with assemblers and distributors.
The prize is within reach: cleaner air, a healthier national vehicle fleet, safer roads, thousands of skilled jobs, and a more competitive manufacturing base. Lower emissions translate into real economic savings, stronger public health outcomes, and a reputation for world-class, clean manufacturing.
On this International Day of Clean Energy, the message is simple and urgent: accelerate what works – and Ghana will lead.
Happy International Clean Energy Day.
Source: citinewroom.com
The views expressed in this article are the author’s own and do not necessarily reflect The Chronicle’s stance.
