Ghana and Kenya are emerging as key destinations for vehicle assembly investment in Sub-Saharan Africa outside South Africa, with strong prospects for near-term industry growth.
According to Fitch Solutions, both countries are well positioned to attract additional investment in vehicle assembly over the medium term.
“Ghana’s automotive industry remains smaller in scale but continues to benefit from supportive policy measures. The Auto Policy and local assembly incentives are encouraging investment, while improving consumer confidence should support demand growth”, it said.
“We forecast production to rise from around 4,700 units in 2025 to approximately 4,900 units in 2026. Although the expiry of the VAT exemption on locally assembled vehicles presents a near-term challenge, continued policy support should help increase local content and support gradual growth in assembly activity”, it added.
The UK-based firm said recent investments point to rising confidence in Ghana’s vehicle assembly industry.
In September 2026, Zonda Tec expanded its assembly facility in Tema, raising its annual production capacity to 12,000 passenger cars, commercial vehicles and electric vehicles (EVs). The expansion is also expected to create an estimated 1,000 jobs.
Although Ghana’s manufacturing sector remains relatively small, Fitch Solutions said the development signals investors’ continued willingness to increase production capacity in the country.
Regional Integration Seen as Key to Industry Growth
Fitch Solutions noted that regional integration could play a growing role in the development of Ghana and Kenya’s vehicle assembly industries, particularly as supplier networks in both markets remain underdeveloped.
“AfCFTA’s [Africa Continental Free Trade Area] automotive framework creates scope for countries to participate in automotive value chains through components, materials and supplier industries rather than relying solely on final vehicle assembly. This should support gradual growth in local manufacturing activity as regional trade links deepen and sourcing becomes more integrated across African markets”.
Fitch Solutions said Ghana and Kenya are unlikely to become major vehicle export hubs in the medium term but are expected to assume increasingly important roles in regional vehicle assembly.
