The Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Automobile Dealerships Ghana (CADEG) have collectively stated their opposition to the Trade Ministry’s Legislative Instrument on Export and Import Regulations, 2023, seeking to restrict the importation of selected strategic products into Ghana, including motor cars.

When the L.I. is passed, importers of 22 restricted items, including rice, sugar, poultry, diapers, and animal intestines would have to apply for a license from a Ministerial Committee, before plying their trade.

The L.I. has been heavily criticized by the minority in Parliament which has on three occasions prevented the Minister of Trade, Kobina Tahir Hammond from laying the Legislative Instrument (L.I.) in the house.

Aside from the Association of Ghana Industries (AGI), which backed the L.I. as a move to complement Ghana’s industrialization drive and ensure healthy competition between local and foreign products, the Joint Business Consultative Forum, comprising the Ghana Union of Traders Associations (GUTA), Food and Beverages Association of Ghana (FABAG), Importers and Exporters Association of Ghana, Ghana Institute of Freight Forwarders (GIFF), the Chamber of Automobile Dealership Ghana (CADEG), and the Ghana National Chamber of Commerce and Industry (GNCCI), have petitioned parliament against the move, saying it would have detrimental effects on their business operations.

In a joint statement issued on Wednesday, November 29, the Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Automobile Dealerships Ghana (CADEG), said their “discontent is further heightened by the government's failure to conduct thorough stakeholder consultations them.”

“As representatives of used vehicle importers and dealers, our unions are dismayed by the absence of meaningful discussions, crucial for a comprehensive understanding of the industry's intricacies. Accordingly, our unions, along with our affiliates nationwide, vehemently oppose this proposition. We emphatically disagree with the content of the draft bill and urge all well-meaning Ghanaians, civil society organizations, and members of both the majority and minority in parliament to likewise disapprove and resist its passage.”

In the statement jointly signed by the President of CADEG, Nana Adu Bonsu Agyekum, who doubles as the CEO of Nabus Motors, the associations said, their primary concern lies in the envisaged licensing process, which, if exclusively administered by the sector minister, is anticipated to be fraught with challenges and procedural intricacies.

“We firmly believe that such a system may inadvertently lead to the creation of a monopoly benefiting only a select few, rather than serving the broader interests of the Ghanaian populace “they noted.

They added that, it is essential for the government to recognize the existing challenges within the automobile industry, particularly in relation to tariffs and percentage tax increments.

At present, the production capacity of motor cars and vehicles by local assemblers falls short of meeting the demand of the Ghanaian populace, exacerbated by the prohibitive costs associated with these vehicles. We acknowledge the indispensable role played by secondhand motor car importers and dealers in addressing this gap and sustaining the nation's mobility needs.”

They thus warned that “any implementation of restrictive measures on the importation of motor cars and vehicles into the country is poised to precipitate a severe unemployment crisis. The extensive network of individuals involved in the industry's value chain would bear the brunt of such a policy shift.

Consequently, we firmly disagree with this proposal and strongly advocate for its immediate withdrawal” they concluded.

In a further interview with MyjoyOnline.com, President of CADEG, Nana Adu Bonsu Agyekum, who doubles as the CEO of Nabus Motors, explained that, “Our opposition is not outright dismissal of the idea of restrictions, but rather a call for a more and well-informed approach.”

He added, “The blanket directive as it stands now lacks clarity, and a comprehensive consideration of the difficulties and dynamics within the automobile industry, so we are advocating for a more detailed and consultative process that will take into account the diverse challenges and contributions of stakeholders in the sector.

We're not against government policy. We want deeper consultation on these very issues that have come up. We want clarity on what constitutes Motor cars under the L.I, so that together we can fashion out a more detailed comprehensive approach in bringing this policy to fruition” he noted.