Today marks the International Day of Clean Energy. The U.K. – Ghana Jobs and Economic Transformation (JET) programme joins the global community to spotlight the vast potential Ghana holds to chart a cleaner energy future – one that boosts industrial competitiveness, safeguards the environment, creates high-quality jobs, and strengthens the country’s ambition as a leading automotive hub in West Africa, in line with Sustainable Development Goal (SDG) 7.

Clean Energy Day, established by the United Nations and observed annually on 26 January, calls for climate action in the fight against climate change, increased universal access to affordable and sustainable energy to stimulate economic opportunities and support achieving SDG7.

“Ghana’s automotive sector has the potential to be a powerful driver of clean energy transition, industrial growth and job creation. This is a part of our partnership approach with Ghana on mutual economic growth, through policies and investments that accelerate cleaner transport, strengthen local manufacturing, and deliver economic opportunities that are inclusive and sustainable.” Terri Sarch – Development Director at the British High Commission, Accra (UK Foreign, Commonwealth and Development Office – FCDO).

The Automotive Sector – a catalyst for clean energy and growth

For Ghana, progress in clean energy is not only central to achieving its unconditional 15% reduction in greenhouse gas emissions (GHG) by 2030 as enshrined in Ghana’s Nationally Determined Contribution (NDC) under the Paris Agreement, but also a massive economic and social opportunity for its citizens.

Transportation is a leading source of GHG in Ghana, contributing to nearly half all energy-related emissions and increasing by nearly 15% from 2015 to 2023. Of the three major drivers behind this rise – reliance on fossil fuels, ageing vehicle population, and rapid urbanisation – two are directly linked to the automotive sector.

In addition, air pollution has been found to be the second leading cause of deaths in Ghana, after HIV/ TB/ Malaria. The economic cost to the nation is estimated at some $3 billion per annum, representing circa 4% of GDP. The Intergovernmental Panel on Climate Change (IPCC) warns that greenhouse gas emissions must fall by 50–80% by 2050 to avert catastrophic warming. It is therefore imperative to reflect on how the automotive sector can become Ghana’s most powerful catalysts for climate action and economic growth.

The UN said “Every US$1 invested in renewables creates 3x more jobs than in the fossil fuel industry.”   

The Baseline and Current State of Play

According to estimates, there are 3.2 million vehicles in operation in Ghana, with an average age of 14 years. Annual vehicle imports stand at about 100,000 units per year, out of which 80% are used – often older than 10 years, inefficient, and high polluting. Uptake of Electric Vehicles (EV) are on the ascendency with a spiralling Electric 2/3-wheeler base, enhancing the 24-hour economy ambition.

Ghana’s shift to a modern, low‑emission vehicle fleet is progressing slowly and could take decades. To accelerate progress, promote jobs, and attract investment, the Ministry of Trade, Agribusiness and Industry – with support from the UK‑Ghana JET Programme – completed a 2025 mid‑term review of the Ghana Automotive Development Policy.

The programme which unlocked $98 million in investment from global car makers like Volkswagen, Toyota, KIA, Nissan, Hyundai etc., (some in partnership with domestic firms including Kantanka) facilitated the establishment of seven state-of-the-art assembly facilities with a combined installed capacity of 140,000 units per year. Although, annual domestic demand can be achieved with potential exports to regional markets, actual demand for new vehicles remains far below this capacity, limiting the sector’s impact.

Unlocking Demand Through Finance

Affordability remains a key driver of demand for locally assembled new vehicles, including electric vehicles (EVs). However, it is very limited due to absence of a structured asset-backed scheme. The predominance of cash-based vehicle purchases significantly constrains access to clean mobility solutions, particularly for the underserved and low‑income populations.

The following recommendations, leveraging the burgeoning automotive industry, to accelerate Ghana’s Clean Energy ambitions are proposed:

Activate Clean Energy provisions in the GADP: To help stimulate strategic investments, competitive local manufacturing, and the gradual transition into components manufacturing, there is an opportunity to fast‑track approval of the revised GADP. Doing so would enable Electric Vehicle and 2/3‑wheeler manufacturers to participate more fully in the programme and unlock its associated benefits.

Support implementation of vehicle financing schemes: There is scope to expand access to locally assembled new vehicles – including electric models and 2/3‑wheelers – particularly among underserved market segments. This can be supported by working with participating financial institutions to establish asset‑based vehicle financing mechanisms that make these products more affordable and accessible.

Boost confidence and demand for locally-assembled vehicles: As the largest purchaser of vehicles nationally, prioritising the procurement of locally assembled vehicles can play a catalytic role in strengthening demand. Close collaboration with assemblers and distributors would help signal confidence to the market and reinforce Ghana’s industrialisation efforts.

The opportunity is within reach: cleaner air, healthy national car parc, safer roads, thousands of skilled jobs, and a more competitive manufacturing base. Lower emissions mean real savings for the economy, stronger public health, and a reputation for worldclass, clean manufacturing. On this International Day of Clean Energy, the message is simple and urgent: let us work together to accelerate the solutions that are already proving effective – so Ghana can lead.

Happy International Clean Energy Day.