One major challenge with vehicles imported into Ghana is the cost involved in clearing them from the ports. Most vehicle importers become overwhelmed with the clearing cost which they may not have anticipated to be so high, either due to misinformation or no information at all about the clearing cost.
This forces disappointed importers to abandon their vehicles at the ports due to their inability to raise funds to clear them.
Many however assumed that Kantanka cars which are produced locally would have been cheaper for an average Ghanaian to purchase.
The price of Kantanka Mensah, a brand new 2.4 AT sedan car, for example, is GHC115,000, however, the government charges GHC25,000 as duty tax on every Kantanka car purchased, making it difficult for competition on the local market, Kantanka.net reports.
According to the company’s CEO, Kwadwo Safo Jnr, Kantanka Automobile Ltd has sent letters to past and current governments about a simple tax waiver but this attempt always proves futile.
Now with VW about to set up shop in Ghana, it will be interesting to see the kind of deal government will be willing to give the foreign company as against a locally grown company.