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Rating agency Fitch confident of Ghana hosting VW plant

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Ratings Agency Fitch says Ghana has the required infrastructure to welcome Germany manufacturing car company VW to fully operate in the sub region.

Per a report by the ratings Agency, Ghana is developing quickly and at a fast pace which only goes to show that VW will be better placed in the country.

According to Fitch, VW’s target markets, Ghana, Ethiopia and Rwanda, are developing quickly and the fast pace of growth in the 3G and 4G subscribers means that the urban population will be well placed to utilise app-based ride sharing and ride hailing, such as that proposed by VW.

Furthermore, the report states that mobility concepts can serve as an introduction to car brands that consumers will be able to afford as their disposable incomes rise, while in the meantime providing consumers with an alternative method of personal transportation.

Fitch believes that Ghana, Rwanda and Ethiopia have the required infrastructure and consumer base, although small, to support VW’s planned operations in the region.

Fitch says there is a niche market for mobility concepts such as app-based ride sharing or shuttle on demand services in the sub sahara Africa region.

Due to the gap in the market between consumers who are not yet able to afford a vehicle but do not want to use public transport, such as buses and taxis.

It also noted that the Mobility Concepts target market will benefit from professional tourists, who travel for business purposes and are unlikely to utilize traditional public transport.

Fitch argues that the market has remained relatively untapped due to the significant cost of vehicles in Sub Sahara Africa countries, such as Rwanda, Ghana and Uganda.

VW announced its readiness to start an automobile factory in Ghana last year.

By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana


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