The Automobile Dealers Union of Ghana (ADUG) has welcomed the Bank of Ghana’s decision to cut Ghana Vehicle Price policy rate from 28% to 25%. The union sees this as a step toward more affordable vehicle prices and stronger business confidence.
Benefits for Everyone
In a public statement, ADUG praised both the Bank of Ghana and the government. They thanked them for working to reduce borrowing costs and create a better economic environment. ADUG believes that better liquidity and easier access to credit will boost investment. This includes both vehicle sales and the transport infrastructure that supports them.
They also highlighted the vital role of the automotive sector in creating jobs, growing the economy, and improving transport for all Ghanaians.
But There’s a Catch
However, ADUG President Kwaku Boateng urged caution in an interview with Citi FM in Accra. He said vehicle prices are unlikely to drop significantly before 2026. The reason is simple: current stocks were bought when the exchange rate was much higher. Lowering prices now would force dealers to sell at a loss — something they cannot afford to do.
Boateng acknowledged that the cedi is strengthening and other economic signs are improving. But he warned that it will take time for these changes to reach showroom prices. The benefits must flow through the entire supply chain.
Also Read: Taxes on used cars to fall after KRA duty ruled illegal
What ADUG Wants from Banks
ADUG also called on banks to play their part. They urged financial institutions to lower their own lending rates. The union asked banks to offer more flexible loan terms, especially to small and medium-sized businesses in the auto sector. ADUG challenged banks to become “true partners in national development” by supporting innovation and productivity.
The Road Ahead
For Ghana Vehicle Price to drop, several things must happen. The cedi must remain stable. Consumers must be patient. And banks, importers, and regulators must work together. Until then, Ghanaians hoping for cheaper cars will likely have to wait.
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