Ghana has been urged to accelerate the decarbonisation of its transport sector to unlock clean energy benefits, reduce emissions, and strengthen the country’s growing automotive industry.
The call was made in Accra by the UK–Ghana Jobs and Economic Transformation (JET) Programme to mark the International Day of Clean Energy, with the programme noting that Ghana is well positioned to harness clean energy to boost industrial competitiveness, create quality jobs, and consolidate its ambition of becoming a leading automotive hub in West Africa, in line with Sustainable Development Goal 7.
The JET Programme called on Vice President Professor Jane Naana Opoku-Agyemang, champion of the Ghana Automotive Development Policy (GADP), and the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, to lead a coordinated national push to accelerate cleaner transport and support an inclusive energy transition.
According to the programme, progress on clean transport is critical not only to achieving Ghana’s unconditional target of a 15 per cent reduction in greenhouse gas emissions by 2030 under its Nationally Determined Contribution, but also to addressing rising public health and economic costs associated with transport emissions.
Transportation remains one of Ghana’s largest sources of greenhouse gas emissions, accounting for nearly half of all energy-related emissions. Emissions from the sector increased by almost 15 per cent between 2015 and 2023, driven largely by dependence on fossil fuels, an ageing vehicle fleet, and rapid urbanisation—factors closely linked to the automotive sector.
The programme further highlighted that air pollution is now the second leading cause of deaths in Ghana, after HIV, tuberculosis and malaria combined, with associated economic losses estimated at US$3 billion annually, equivalent to about four per cent of GDP.
Speaking on the clean energy transition, Terri Sarch, Development Director at the British High Commission in Accra, underscored the role of the automotive industry in driving sustainable growth.“Ghana’s automotive sector has the potential to be a powerful driver of clean energy transition, industrial growth and job creation. This forms part of our partnership with Ghana on mutual economic growth, through policies and investments that accelerate cleaner transport, strengthen local manufacturing, and deliver inclusive and sustainable economic opportunities,” she said.
Ghana currently has an estimated 3.2 million vehicles in operation, with an average vehicle age of 14 years. Annual vehicle imports stand at about 100,000 units, with nearly 80 per cent comprising used vehicles, many of which are more than a decade old and highly polluting.
Although the uptake of electric vehicles—particularly electric two- and three-wheelers—is increasing, the transition to a modern, low-emission vehicle fleet remains slow and could take decades without targeted interventions.
A 2025 mid-term review of the Ghana Automotive Development Policy, conducted by the Ministry of Trade, Agribusiness and Industry with support from the UK–Ghana JET Programme, revealed that the policy has helped attract approximately US$98 million in investments from global automotive manufacturers, including Volkswagen, Toyota, Kia, Nissan, and Hyundai, as well as local firms such as Kantanka.
So far, seven vehicle assembly plants have been established, with a combined installed capacity of 140,000 vehicles annually. However, domestic demand for new vehicles remains significantly below this capacity, limiting the sector’s overall impact.
Affordability was identified as a major constraint, with the programme citing the absence of structured, asset-backed vehicle financing schemes and the dominance of cash-based purchases, which restrict access to cleaner mobility solutions, particularly for low-income households.
To address these challenges, the JET Programme outlined three priority actions for government consideration: fast-tracking approval of the revised GADP to include electric and two- and three-wheeler manufacturers; supporting asset-backed vehicle financing schemes through participating financial institutions; and prioritising government procurement of locally assembled vehicles to stimulate demand and boost investor confidence.
According to the programme, accelerating these measures would result in cleaner air, safer roads, thousands of skilled jobs, a more competitive manufacturing base, reduced emissions, and improved public health outcomes.
Marking the International Day of Clean Energy, the programme noted that Ghana has a clear opportunity to lead in clean manufacturing and sustainable transport if decisive action is taken to scale up existing progress.
The International Day of Clean Energy, observed annually on January 26, was declared by the United Nations to raise awareness and mobilise action towards a just and inclusive global transition to clean energy for the benefit of people and the planet.