February 1st, 2022 at 05:54 am
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Project Overview and Role:
Introduction
The Jobs for Economic Transformation in Ghana (JET) Programme is funded by the UK Foreign, Commonwealth and Development Office (FCDO). The programme is FCDO Ghana’s flagship investment-led job creation programme that will help Ghana transition away from aid dependence in line with the Government of Ghana’s (GoG) “Ghana beyond Aid” strategy. It seeks to leverage increased investments into the manufacturing and industrial sectors, and introduce new technology and management capabilities, increasing the capabilities of the workforce generating formal employment and economic diversification.
Ghana Jobs for Economic Transformation (JET) Programme
The Jobs for Economic Transformation in Ghana (JET) Programme is funded by the UK Foreign, Commonwealth and Development Office (FCDO). The programme is FCDO Ghana’s flagship investment-led job creation programme that will help Ghana transition away from aid dependence in line with the GoG “Ghana beyond Aid” strategy. It seeks to leverage increased investments into the manufacturing and industrial sectors, and introduce new technology and management capabilities, increasing the capabilities of the workforce generating formal employment and economic diversification.
Background
The vision of the Government of Ghana (GoG) is to make Ghana the new manufacturing hub in Africa. In this regard, a Ten-Point Industrial Transformation Plan is being implemented by Ministry of Trade and Industry. The Plan includes a comprehensive programme component for the development of the Automotive and Components Manufacturing Industry.
The GoG-FCDO Jobs and Economic Transformation (JET) Project supports Government to implement the Ghana Automotive Industry Development Programme that seeks to facilitate investment into the automotive sector as one of the strategic anchor industries targeted to create new growth poles in the Ghanaian economy for significant job creation through integration into global supply chains and the development of local content suppliers.
Automotive Development Policy
Ghana’s well formulated Automotive Development Policy framework launched in 2019 has positioned the country as the new automobile manufacturing hub in Africa. The Policy consists of comprehensive incentives and complementary support measures to attract Original Equipment Manufacturer (OEMs) to invest in vehicle assembly and drive demand for component manufacturing by investors and local suppliers in Ghana, as well as stimulate the development of regional value chains.
The key Policy objectives include:
- To establish in Ghana a fully integrated and competitive industrial hub for the Automotive Manufacturing for Ghana and the West African market.
- To generate highly skilled jobs in automotive assembly and the manufacture of components and parts, with spill over effects into other sectors of the economy.
- To provide a well-developed industrial park (Auto Park) for vehicle assemblers and component manufacturers to co-locate for efficient supply chain and logistics management. The enclave should have guaranteed availability of reliable, adequate and affordable electricity, water and waste management systems.
As a result of the Policy, several OEMs and their contract assemblers have presented investment plans and received approval to establish assembly plants and some have already commenced commercial production.
The operationalisation of the Ghana Automotive Development Programme (GADP), which is the implementation framework of the Auto Policy, will require expertise, effective institutional support, regulatory oversight and coordination of dialogue amongst stakeholders in the sector. This is to ensure that Ghana develops an integrated automotive industry capable of meeting domestic demand and competitively exporting into the African Market.
In order to ensure effective coordination, the Ministry has established an easily accessible, Automotive Development Centre which will serve as one-stop-shop, including hosting all critical functional units of the Automotive Development Programme.
In line with the Auto Policy, the Ghana Automotive Industry Development Council (GAIDC) is also being established to serve as the umbrella consultative body for Government and the Auto Industry.
The GAIDC will review progress and bottlenecks in policy implementation, assess and plan for the infrastructure, R&D and human capital needs of the Auto Industry and make recommendations to the government accordingly. Through regular interactions and information sharing, the Development Council will fulfil a very important role in sustaining the implementation of the Auto Programme. In this regard, an Automotive Development Council Bill will be presented for enactment by Parliament.
Objective of Assignment
A key strategic objective of this assignment is to enable the key stakeholders in Ghana collaborate to build local production capacity to export made-in-Ghana vehicles under the African Continental Free Trade Area (AfCFTA) Agreement.
In this regard, under the Automotive Policy, Government will support the development and upgrading of specific industrial clusters, including the Suame Magazine in Kumasi, to ensure that the benefits of the new automotive industry are harnessed by small scale industries as suppliers to auto assemblers.
Suame Magazine is the largest industrial cluster of MSMEs in West Africa. Operators in the Magazine are estimated to employ over 200,000 workers, mainly in workshops specializing in machining, tooling, metal fabrication, foundry and vehicle repair and maintenance.
Government also intends to develop a medium to large scale automotive components and parts manufacturing to support assembly plants and supply the aftermarket. This is the key to boosting local content and graduating assembly plants from SKD to CKD in the shortest possible time. Currently, a number of foreign-based component manufacturers are negotiating partnership arrangements with Ghanaian companies for the local production of components and parts to commence.
Scope of Services
The Ministry intends to engage the services of a Senior Technical Expert with international experience in Component Manufacturing to provide technical direction and leadership for Ghana’s Component Manufacturing and Supplier Development Programme.
The specific tasks of the Technical Expert include the following:
- Propose policies and incentives to attract both foreign and domestic investment into components manufacturing.
- Design and customize a specific intervention programme to upgrade small scale mechanical and auto engineering workshops at the Suame Magazine.
- Assist the Ministry formulate a concise and consistent policy and incentive framework to attract leading OEM and independent component manufacturers to invest in Ghana or partner with Ghanaian enterprises.
- Develop and oversee the implementation of an action plan for attracting investment into Ghana from component manufacturing companies primarily from Mexico, Thailand, South Africa, Morocco and Egypt.
- Scout for investors and providing the Ministry with Technical Assistance for investor identification and negotiation including missions to Mexico, Thailand, Morocco and Egypt.
- Provide technical assistance required by the Ministry to screen and recommend investment proposal for approval.
- Engage with prospective investors on the follow-up decisions and actions required to be taken by the Ministry of Trade and Industry.
- Identify Ghanaian companies with potential to participate in the Automotive Components Supply Chain and organize match-making missions between foreign components manufacturers and Ghanaian companies.
- Advice the Ministry on measures needed to support the development of selected industrial raw materials, such as Glass, Aluminium, Iron and Steel, Rubber and Plastics.
Method of Application
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Closing Date: 18th February, 2022.