September 7, 2018

GEPA visits Kantanka Motors

As part of building capacities and forming closer ties with exporters and potential exporters, Officers of the Ghana Export Promotion Authority led by Deputy CEO Samuel Dentu, on the 6th of September 2018, paid a visit to Kantanka Motors to familiarize themselves with the operations of the manufacturing concern and to perform export readiness diagnosis and penetration strategies to the vast ECOWAS market. The diagnosis was also meant to inform GEPA about the type of support the Authority could offer the local company and the export oriented strategies needed to launch them into the export market.

The team had a fruitful discussion with the General Manager on the organization’s ecosystem and the inherent challenges hindering their operations. Notable amongst the myriads of challenges raised were duties on imports on Completely Knockdown (CKD), lack of defined protocol for clearing CKD on non-labelled parts and the general lack of incentives for the manufacturing concern.

Kantanka contends that payment of duties on their cars although manufactured in Ghana is as a result of the duty charged on the imported components (CKD). The CKD, in line with the ECOWAS CET attracts a duty of 5% excluding VAT, NHIS and other taxes such as special levy, ECOWAS/EXIM etc. The company believes that a waiver of the taxes on the inputs would have a significant effect on the prices of their vehicles.

One other thorny issue that hinders and delays their operations especially at the port is the lack of clearly defined protocols to enable them clear imported CKD components. This leads to unnecessary delays. They urged Ghana Revenue Authority to institute a well-defined protocol to assist the firm clear their inputs on time and without the payment of demurrage charges.

The company further intimated that although the government needs revenue to undertake projects, indigenous enterprises such as Kantanka Automobile should be given all the necessary support and incentives to be able to grow and be competitive globally.

On the part of GEPA, the Deputy CEO Mr. Sam Dentu was impressed with the work at the manufacturing concern. He reiterated the fact that GEPA, as the National TPO mandated to develop and promote exports, will provide all the requisite support within its mandate to lead Kantanka into the Sub-regional market and other markets.

The firm was further counseled to register with the Authority and begin the process of registering for the certificate on ECOWAS Protocol on Free Trade (Thus ECOWAS Trade Liberalization Scheme – ETLS).

Discussions revealed that efforts at various levels of government are being undertaken to assist the firm to operate optimally and be competitive. Ministry of Trade (MOTI), Ministry of Finance and other parastatals are but a few of the bodies that have indicated their readiness to assist the firm.

Further deliberations revealed that the marketing strategy pursued by the firm was based on the top-bottom approach to sales.  Thus a situation where the upper and middle class are targeted with specific products to get their approval and then other segments are targeted as well.  Other marketing strategies adopted by the firm include One Ghana Mission – One Pickup and one Saloon car. In other words Kantanka is negotiating with the various Ghana Missions abroad for the purchase of Kantanka cars.

Other members of the GEPA visiting team included Head of Services, Manufacturers & Petrochemicals and his team, the PRO of GEPA and a media person.

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