Ghana has required infrastructure to host VW plant - Rating agency Fitch

Fitch Ratings is one of the five global leading credit rating organisations.
  • VW announced its readiness to start an automobile factory in Ghana last year.
  • The car manufacturing company also intends to introduce an app-based ride sharing and ride-hailing, in Ghana.
  • Rating agency Fitch believes Ghana is ready for such development due to its internet penetration in the urban areas.

Ratings Agency Fitch has said that Ghana has the needed infrastructure to host the plant of Germany manufacturing car company VW to fully operate in the sub-region.

A report from the rating agency said Ghana is developing at a fast rate which only indicates that VW will be better placed in the country.

Fitch added that all of VW’s target markets in Africa; Ghana, Ethiopia, and Rwanda, are developing with a fast pace of growth in the 3G and 4G subscribers. 

This according to Fitch means that the urban population will utilise the app-based ride sharing and ride-hailing, like that proposed by VW.

The report added that the mobility concepts can also be an introduction to car brands that consumers will be able to afford as their disposable incomes rise, as they provide an alternative method of personal transportation to customers in the meantime.

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 the 3 countries have a ready market for transportation concepts such as app-based ride sharing or shuttle on-demand services in the sub-Sahara Africa region.

They explained that this is because of the gap in the market between consumers who are currently unable to buy a vehicle but do not want to use public transport, such as buses and taxis.

Tourists and others who travel to Ghana for business can use this service instead of using the traditional public transport.

According to Fitch this aspect of the transportation sector in Ghana 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.

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