The Ghanaian government imports 10 duty-free electric buses, while private operators pay duties, creating concerns about unfair competition and market distortion.
The Ghanaian government has brought in just 10 electric vehicle (EV) buses as part of its broader commitment to climate action and reducing carbon emissions. This initial batch is part of a larger plan to introduce 100 EV buses to the country. However, controversy has arisen over the duty exemptions granted to the government, which have not been extended to private sector operators importing similar vehicles.
According to The High Street Journal sources, while private operators had to pay duties on their EV buses, the government’s buses were cleared duty-free. These buses have been placed under the Office of the President, a move that facilitated their tax-exempt status. This comes despite the government’s 2024 budget announcement, which promised import duty exemptions for commercial electric buses as part of the country’s efforts to promote eco-friendly transportation and achieve net zero carbon emissions.
The discrepancy between the budget’s promises and the current situation has caused frustration among private transport operators, who were still required to pay duties when importing their own EV buses. This creates an uneven playing field, with the government benefiting from tax breaks while private companies are forced to bear additional costs. Industry insiders believe that the exemptions announced in the budget may only apply to government-imported buses, potentially distorting the transport market and discouraging private investment in the electric vehicle sector.
Ghana is part of the ECOWAS Common External Tariff (CET) agreement, which mandates a 20% import duty on vehicles from non-ECOWAS countries. While Ghana previously secured a temporary reduction to 5% for smaller-engine vehicles in 2015, extending similar exemptions for electric vehicles would require the government to negotiate with ECOWAS and pass a legislative instrument (LI) to grant legal effect to the duty-free status. This legislative move would likely clarify that only government-imported buses are eligible for duty exemptions, a politically sensitive distinction, especially in an election year.
Private commercial transport operators have criticized the government’s policy as discriminatory. They argue that offering duty exemptions exclusively to public sector EV buses gives an unfair advantage to government-run transportation services. The policy, they say, could deter private investment and hinder innovation in the electric bus market, which is crucial for the country’s transition to greener public transportation.
Adding to the concerns, the government is reportedly negotiating for lower electricity tariffs for EV buses, which would allow the state-owned buses to offer lower fares than privately operated EVs or even traditional public transport like “trotros.” This could make it even harder for private operators to compete fairly.
Despite the government’s push for electric public transport, the rollout of the new buses faces challenges, particularly the lack of sufficient charging infrastructure. Currently, only one operational charging point exists, but efforts are underway to establish additional stations in Accra to support the buses’ operation.
analysts argue that as the government moves forward with its EV plans, balancing support for both public and private sectors will be key to fostering a competitive and sustainable electric vehicle market in Ghana.
