Local automobile company Kantanka has expressed concerns over what they believe is the hasty approach government has resorted in signing the agreement for the establishment of an assembling plant of German car giant VW in Ghana.
According to Katanka, government failed to do the necessary stakeholder consultation before signing the deal.
In a statement Kantanka said although they are not against the coming of VW into the Ghanaian market, they hoped the government had attached speed and relevance to the numerous proposals that they have submitted to it like it did in the case of VW.
“We want to state emphatically that we welcome the news of VW setting up a plant here in Ghana. We are not against it. We are aware there will be competition, as there has always been and this is going to give us the marginal propensity to work hard and achieve our long term goals for mother Ghana and Africa.
“However, we are of the view that government has hastily signed the agreement without broad stakeholder consultations.
“We are shocked to learn that the Ministry of Trade and Industry is part of this deal and want to question the Minister’s position in the promotion of trade and industry in Ghana vis-à-vis the local automotive industry,” Katanka bemoaned.
VW is set to begin operations in Ghana by next year. The deal was announced by the German Chancellor Angela Merkel when she visited President Akufo-Addo last week.
Below are details of the statement by Kantanka
PRESS STATEMENT BY KANTANKA AUTOMOBILE ON THE SETTING UP OF
VW’S ASSEMBLY PLANT IN GHANA.
Our attention has been drawn to the Daily Graphic publication on Friday August 30,2018 captioned “President Akufo-Addo lauds VW’s decision to set up Assembly Plant in Ghana” duringthe German Chancellor Angela Merkel’s brief visit to Ghana on Thursday, August 29, 2018
The paper stated that the Memorandum of Understanding (MoU) for the establishment of the automobile assembly plant was signed between Volkswagen (VW) and Ghana’s Ministry of Trade and Industry.
Prior to the visit of the German Chancellor, the Senior Minister, Yaw Osafo-Maafo, in a press briefing at the recently held Graphic / Stanbic Breakfast Meeting at La Palm Hotel on August 1, 2018 stated and it was reported by the Daily Graphic of August 2, 2018 that, two international automobile companies are expected to set up their plants in the country to assemble their brand of vehicles.
Senior Minister Yaw Osafo-Maafo again stated that two separate MoUs were submitted to the government and government has fast-tracked the signing of the MoUs to expedite the setting up of the plants.
Senior Minister Yaw Osafo-Maafo further stated that “in the MoU which was currently being reviewed was a request that “of course government buys a certain amount of the cars”
We want to state emphatically that we welcome the news of VW setting up a plant here in Ghana. We are not against it. We are aware there will be competition, as there has always been and this is going to give us the marginal propensity to work hard and achieve our long term goals for mother Ghana and Africa.
However, we are of the view that government has hastily signed the agreement without broad stakeholder consultations.
We are shocked to learn that the Ministry of Trade and Industry is part of this deal and want to question the Minister’s position in the promotion of trade and industry in Ghana vis-à-vis the local automotive industry.
We are also shocked to learn that government has fast-tracked the signing of the MoU and want to ask the sector minister, still the Minister of Trade and Industry and again his Senior Minister the last time they have fast-tracked any of the numerous proposals that we have submitted to their offices.
We are again shocked that in the MoU, government has agreed to buy “a certain amount of the cars”from the companies yet to be established and want to ask the Senior Minister if Kantanka has ever been given that opportunity.
We want to find out:
i.Under which policies are the international companies going to operate?
Under which Custom Procedure Code (CPC) are their knock downs going to be treated?
iii. Under which tax and duty regimes are they going to be classified?
We want to remind all Ghanaians once again that Kantanka is not against the setting up of auto assembly plants in the country but nostalgic memories are that we have seen Nissan here in the early 70s, DAF and Neoplan existed and when the going got tough they closed down and left us. Kantanka has come to stay.
God bless our homeland Ghana and make Kantanka greater and stronger.
MANAGEMENT
KANTANKA AUTOMOBILE CO. LTD.
1ST SEPTEMBER, 2018
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
Upon all your sister effort for NPP, this ***barred word*** Bawumia and Akuffo Addo has stamped you badly better change your mind on 2020.
Why should the gov.help you free market and competition.More companiesgood prices no monopoly.Your cömpany is private not gov.nonsens
I think Kantanka can do better. Like many Ghanaian entrepreneurs who will like to own 100% of everything we must be ready to share. Resources required to manufacture/ assemble cars is very expensive and is capital intensive if you want to be a global brand. There is the need to invite investors who will be ready to invest in your brand. Secondly, there is no strong corporate governance practice. The who business revolve around Apostle and Son and some mechanics. There is the need for a strong board with expertise to recruit the right form of executives to manage the plants. Thirdly, the automobile industry is highly competitive with established brands with highly skillful sales team. you need solid team with much product knowledge to lead your sales drive. there is currently no uniqueness in your product(USP) Why should I buy Kantanka instead of Toyota? Is it just because it is manufactured in Ghana? No Way. convince me. As much as we all love to promote made in Ghana product, our entrepreneurs should see themselves beyond mere establishment of businesses and see themselves in the business so they grow with it. Many business founders in the western World have been fired from businesses they once form. let's invite ideas. I believe Kantanka will succeed with the right mentality not just. #NO HATE SPEECH#
The model is CRAWL-WALK-RUN. You started producing car Ghanaians cannot afford and you want to be specially protected.
Massa, we are not in the era of JOKES.Lets get serious and stop this ***barred word*** comments.The government mean serious business.
my piece of advice to kantanka is to hire a competent marketer and stop hiring a sales personnel as your marketer. Your management knows nothing about marketing thats why they are complaining. They even dont know their potential market. Do you think you can just stand up and produce for market you dont know their purchasing power and expect them to patronize? Stop complaining and do proper market research to know the type of cars which the Ghanaian market can afford so that it will help you to penetrate the African market.
Your father sponsored NPP and they stabbed you in the back. Hahaha Next time remember to sponsor and bring the whole congregation of Kristo Asafo to Kwabenya to vote for NPP.VW welcome
Even Safo Kantanka and his family dont use kantanka cars what ***barred word***
How many people do Kantanka employ ?
Sometimes I wish I'm not Ghanaian. What kind of ***barred word*** argument is this? Once upon a time there was only GHACEM in Ghana producing cement. At a period cement sold at GHC55.00. What do we see now with the introduction of Dangote and others. Cement is hovering around GHC28.00. KANTANKA please come again! Position yourself well. May be you can collaborate to produce some of the parts they may need.