The centre says the agreement will be firmed up with a Memorandum of Understanding between the two countries early next year.

This follows a recent visit by a government delegation from Cote d’Ivoire to the country to interact with their Ghanaian counterparts on how to develop inter-trade agreements to enhance the auto value chain in the two countries.

The head of GADP, an entity under the Ministry for Trade and Industry, Kojo Annobil, told the Graphic Business exclusively that the initiative would prevent needless competition between the two nations in the assembling and manufacturing of vehicles.

“The deal will ensure Cote d’Ivoire has an open market in Ghana for commercial vehicles while we produce passenger vehicles for their market,” he told the Graphic Business.

He further revealed that there would be a setting up of a technical working group representing the two countries that would ensure the smooth implementation of the policy while promoting collaboration instead of competition.

“This will give our local assemblers and manufacturers an expanded market in Cote d'Ivoire and enable them to produce for the Ivorian market,” he stated.

Common market

At a joint meeting between the two nations which took place on November 4 to 5 in the presence of the Chief Director of the Ministry of Trade and Industry(MOTI), Patrick Nimo, the Automobile Assemblers Association of Ghana(AAAG) and the  African Association of Automotive Manufacturers (AAM), the Ivorians asked their Ghanaian counterparts to share the experiences they encountered during the implementation of the GADP.

Subsequently, the two countries agreed to develop a common market and share ideas on how to establish automobile assembling plants to complement each other rather than compete against each other.

They fashioned a development plan to forge trading among both countries and also within the sub-region to create a robust partnership that benefits both nations economically and socially.

“This collaboration in the auto industry is expected to boost trade, investment and economic growth which would ultimately improve the lives of people in both countries,” Mr Kojo Annobil told the Graphic Business.

GADP

The Ghana Automotive and Development Policy (GADP) also known as ‘The Auto Policy’ was fashioned out by the Ministry of Trade and Industry and was geared towards making Ghana a fully integrated and competitive industrial hub of the automotive industry in the West African sub-region.

It also aims to generate highly skilled jobs in automotive assembly and the manufacture of components and parts, with spillover effects into other sectors of the economy; while establishing an asset-based vehicle financing scheme for locally manufactured vehicles to ensure affordability for vehicle buyers.

This is expected to improve the balance of payments through competitive import substitution and export market development while also improving vehicle safety and environmental standards.

It is also expected to transform the quality of the national road transport fleet and safeguard the natural environment.