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Volkswagen to open plant in Ghana early 2020

German car-maker, Volkswagen is set to open an assembling plant in Ghana early 2020.

In 2018 the company announced plans to set up a plant in Ghana as it continues to expand across Africa.

Volkswagen already builds vehicles in Kenya and recently opened another car plant in Rwanda as part of its expansion project in East Africa.

The Rwanda project was the first of such plants in the East African nation expected to led to the building of up to 5,000 cars per year.

VW CEO for Africa, Thomas Schafer said Creating a market in Africa is key for Volkswagen.

Speaking at the German-Ghanaian Business council meeting in Berlin, he said that the second phase of their presence in Ghana will be intensified in 2021.

Tax cuts

In August this year Ghana said it was prepared to offer car making companies Volkswagen and Nissan tax breaks of up to 10 years.

The move according to the government was intended to attract such automakers to the West African economy.

Setting up local manufacturing plants in Ghana, according to the government should grow its economy and create jobs.

The move to offer such car makers tax breaks is considered an incentive enough to get them to execute their plans.

Ghana’s Trade Minister Alan Kyerematen at the time said that the full 10-year tax break will only apply to companies building vehicles in Ghana.

There will also be a five year tax holiday available for partial manufacturing of vehicles as well.

He said import duties on new and used vehicles will be increased to 35% from 5%-20% to encourage the purchase of locally built cars.


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