Volkswagen, Nissan to get tax breaks for plants in Ghana

  • Toyota, Suzuki also among carmakers considering new factories
  • New auto policy discourages imports by increasing duty to 35%

Ghana will offer tax breaks of up to 10 years to automakers that set up local manufacturing plants, as the government seeks to attract international companies such as Volkswagen AG and Nissan Motor Co.

Volkswagen and Nissan both agreed last year to set up auto-assembly plants if Ghana signed off on an official incentive plan, while Renault SA said in January it would consider a similar move. In March, Toyota Motor Corp. and Suzuki Motor Corp. announced a joint venture to produce vehicles in the nation.

Ghana’s move to lure carmakers follows South Africa, which has attracted seven manufacturers already.