Japanese automaker Nissan will join a growing field of car-makers who have set their sights on opening up assembly plants in Ghana after a deal was signed this week.
Nissan inked a preliminary deal on Tuesday after similar deals were signed by Germany’s Volkswagen and China’s Sinotruck.
Mahindra from India already has a number of plants in the south of the West African country.
Nissan, which already has a plant in neighbouring Nigeria, is currently the biggest car seller in Ghana with a 32 percent market share. The company plans to make Ghana the sales hub in West Africa.
“We see Ghana as the gateway to West Africa… we will grow our business presence in the region… for the long-term,” said Mike Whitfield, Nissan’s Managing Director for Africa.
He was speaking to reporters after signing a memorandum of understanding with Ghana’s trade ministry.
Ghana’s Trade minister Alan Kwadwo Kyeremanten said the government was considering incentives for Nissan to create an environment that would allow the company to flourish.
Industry in Ghana accounts for more than 25% of the country’s GDP, and this figure is expected to rise to at least 30% by 2021.
The West African country’s main manufacturing industries include electronics manufacturing, car manufacturing, electric car manufacturing, automotive manufacturing, light manufacturing, food processing, cement, and small commercial shipbuilding.