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Consultant – Development of a Framework for Affordable Vehicle Finance At Palladium


The Jobs and 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 (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 JET Programme

The JET programme will help Ghana drive economic transformation and job creation by facilitating private investment into priority industrial sectors, of which Automotive is one. The programme objectives are to facilitate £50M of private investments and create 15,000 jobs within its five (5) year duration. Activities to be undertaken by the programme include:

Ø stimulating investment into the anchor industries by supporting GoG to provide market and commercial information to guide investment decisions.

Ø supporting domestic firms within the sector/ adjacent sectors to enter the automotive value chain and attract investments.

Ø identifying and addressing gaps in the enabling environment to facilitate investments.

Ø providing technical assistance to national institutions to develop and implement industrial policies.

Ghana Automotive Development Programme (GADP)

Ghana’s well-formulated Automotive Development Policy framework was launched in 2019 and is strategically positioning the country as the new automotive manufacturing hub in (West) Africa. This policy, inter alia, seeks to establish Ghana as a fully integrated and competitive manufacturing hub for automobiles in the region and create highly skilled jobs by attracting investments from Original Equipment Manufacturers (OEMs) for vehicle assembly as well as component manufacturing.

Global OEMs, such as Volkswagen, Toyota and Nissan, have responded positively and invested to assemble vehicles from Semi-Knocked Down (SKD) kits. More OEMs are embracing this opportunity and have accordingly submitted their investment plans to the Government of Ghana (GoG). Based on the foregoing projections, more than half of annual vehicle imports into the country are expected to be assembled locally. This implies that local production of new vehicles would be able to meet domestic demand to catalyse the transition from Semi-Knocked Down (SKD) to Enhanced SKD and eventually to Complete Knocked Down (CKD). Unfortunately, demand for new vehicles is generally very low and needs to be urgently addressed to ensure sustainable and increasing anchor investment into the sector. Currently, new vehicle sales account for about 20-30%[1] of annual vehicle imports into the country. Therefore, it is imperative to stimulate demand for locally assembled new vehicles to ensure the sustainable growth and development of Ghana’s nascent automotive industry.

Financing has been identified as one of the major levers of demand for new vehicles in Ghana. Currently, access to credit/ vehicle finance remains a challenge for most consumers. Less than 30% of vehicles sold in Ghana are purchased with credit[2]. The attractiveness to purchase locally assembled vehicles is further hampered by prohibitively high interest rates hovering around 26-30%[3]. Thus, an overwhelming majority of vehicles are fully paid for via cash. This leaves little room for credit transactions thereby limiting the market potential for new vehicle sales. Notwithstanding the above challenges, GoG’s commitment to creating demand in the sector remains unwavering. GoG has already triggered one of the arms of demand by directing all state institutions to prioritize the purchase of locally assembled vehicles. In addition, the balance of the GADP which is expected to be implemented soon would improve attractiveness of locally assembled vehicles by increasing tariffs (import duty) on both new and used imported vehicles (FBUs). To change this trend and create increasing demand for locally assembled new vehicles (and subsequently for used vehicles already in the market), a framework for affordable vehicle financing needs to be developed and implemented.

This assignment is expected to benefit GoG, OEMs/ local assemblers, financial institutions, franchised dealerships, used/ new car retailers and consumers (including women-owned/ led businesses).

Objectives of the Assignment

1. Global Objective

The overarching objective of this assignment is to unlock the economic potential of Ghana’s vehicle assembly to facilitate increased investments, creation of highly skilled jobs, component manufacturing and improved road safety.

2. Specific Objective

The specific objective of this assignment is to develop a framework for affordable vehicle financing which will stimulate demand for locally assembled new cars, thereby spurring investments for the sustainable growth and development of Ghana’s automotive industry.

3. Scope of Work

In view of the above, the Consultant/ Firm shall be required to undertake the following tasks:

3.1. Provide detailed information and lessons learnt from other economies (e.g., South Africa) in developing similar affordable vehicle finance programmes and the roadmap to achieving single-digit interest rate.

3.2. Provide detailed information and lessons learnt from other countries (e.g. India Nigeria, South Africa) in developing women-targeted vehicle finance programmes for commercial and non-commercial use – including lower rate to interest-free loans.

3.3. Propose a framework for Vehicle Asset-Based Finance and a complementary but separate women-targeted framework.

3.4. Propose a scheme for affordable vehicle finance, initially for new cars and subsequently for used cars.

3.5. Propose a complementary but separate scheme for women-targeted affordable vehicle finance, for both commercial and non-commercial use, initially for new cars and subsequently for used cars.

4. Required Outputs

The following outputs are expected to be delivered considering the scope of work above:

4.1. Establish a Working Group consisting of all relevant stakeholders – ensuring women-focused associations and consumers organizations are included.

4.2. Submit a proposal for the development of a framework for Vehicle Asset-Based Finance model and of a women-targeted framework.

4.3. Submit a proposal for the development of an Affordable Vehicle Finance Scheme and of a women-targeted Affordable Vehicle Finance Scheme.


A consulting firm/ senior category expert with areas of expertise in International Finance, Asset-Based Finance, Macro and Microeconomics.

Competencies include but are not limited to:

  • In-depth knowledge of financing in the African context.
  • Experience in developing asset-based finance schemes.
  • Practical knowledge of the financial system in Ghana.
  • Experience in policy formulation and advise.
  • Knowledge of the automotive industry in Ghana, Africa and globally.
  • Gender mainstreaming experience and/or knowledge of women-targeted interventions in finance schemes and in the automotive industry.
  • Capacity to work closely with gender experts if the abovementioned experience and knowledge are lacking.
  • A passion for achieving business and development outcomes.
  • Building and leading teams to deliver project outputs under very tight deadlines.
  • Capacity to coordinate assignments with internal fund management and technical experts, Government Ministries, Departments and Agencies as well as both foreign and domestic firms.
  • Working in a fast-paced, results-driven environment.
  • Excellent negotiation skills.
  • Experience in working with multiple stakeholders.
  • Excellent IT skills and proficient use of relevant software.

Location & Duration:

This assignment shall be for a duration of two (2) months.

The Firm/ Consultant, in the first part of the assignment, will engage extensively with the Technical Working Group formed by MoTI. The Firm/ Consultant, shall with the assistance of MoTI & JET, undertake further analysis and broader stakeholder engagements, including but not limited to Financial Institutions (FIs), Regulatory Institutions (Monetary Policy Committee), MDAs, Associations and Consumers.

For the second part of this assignment, the Firm/ Consultant shall collaborate with the Technical Working Group to deliver a roadmap to GoG & JET on how to sustainably reduce interest rates to single digits.

Consequently, the Expert will submit the following proposals:

A. Affordable vehicle finance scheme (plus a complementary but separate women-focused scheme for affordable vehicle finance), and

B. Vehicle asset-based finance framework (a complementary but separate women-targeted framework for vehicle asset-based finance).

Location: Accra, Ghana.

Reporting and Timeframe

The assignment is expected to commence on 01 November 2022 and end by 15 January 2022. Activities to be undertaken by the Consultant/ Firm include engagement with relevant multi-sectoral stakeholders in Ghana, provision of initial findings and recommendations and delivery of final proposal to JET and MoTI (not exhaustive).

The Consultant/ Firm shall report to the JET – Auto Sector Lead and MoTI Chief Director, submitting weekly and monthly progress reports to same.

At the end of this assignment, the Consultant/ Firm shall submit the proposals to the JET – Auto Sector Lead, MoTI Chief Director and Hon. Minister of Trade and Industry in both hard copies and electronic version readable by Microsoft Office application. All relevant technical papers, reports and other documents shall be attached to the final proposals to be submitted to JET and MoTI. The proposals shall be in English language only.

Additionally, the Consultant/ Firm shall submit a final report to the JET – Auto Sector Lead, MoTI Chief Director and Hon. Minister of Trade and Industry no later than two (2) weeks from the date of completion of this assignment. The final report shall include recommendations of achieving and sustaining affordable vehicle finance. Likewise, all relevant documents, technical papers and reports shall be attached to this final report. The report shall be submitted in both hard copies and electronic format readable by Microsoft Office application.


The consultant/ Firm’s fees shall be negotiated. Payments will be made upon receipt and acceptance of milestones and/or reports.

How to Apply For This Contract

Qualified individuals/ consortium should submit their applications and CV via email by 11:59 pm on 01 October 2022 in PDF format.

Method of Assessment

Individuals/ Consortium will be assessed based on their expertise and experience of the subject matter and industry, the quality of their proposal and their ability to provide a robust plan of how they intend to carry out the tasks stated within this ToR. Proposals should be quoted in Britain Pound Sterling (GBP).

[1] DVLA Ghana

[2] Ghana Authorized Distributors Association (GADA)

[3] JET Analysis

About Palladium

Palladium is a global leader in the design, development and delivery of Positive Impact – the intentional creation of enduring social and economic value. We work with governments, businesses, and investors to solve the world’s most pressing challenges. With a team of more than 3,000 employees operating in 90 plus countries and a global network of over 35,000 experts, we help improve economies, societies and, most importantly, people’s lives.

Equity, Diversity & Inclusion – Palladium is committed to embedding equity, diversity, and inclusion into everything we do. We welcome applications from all sections of society and actively encourage diversity to drive innovation, creativity, success and good practice. We positively welcome and seek to ensure we achieve diversity in our workforce; and that all job applicants and employees receive equal and fair treatment regardless of their background or personal characteristics. These include: (but are not limited to) socio-economic background, age, race, gender identity and expression, religion, ethnicity, sexual orientation, disability, nationality, veteran, marital or Indigenous status.

Should you require any adjustments or accommodations to be made due to a disability or you are a neurodivergent individual or for any other circumstance, please email our team at accessibility@thepalladiumgroup.com and we will be in touch to discuss.

Safeguarding – We define Safeguarding as “the preventative action taken by Palladium to protect our people, clients and the communities we work with from harm”. We are committed to ensuring that all children and adults who come into contact with Palladium are treated with respect and are free from abuse. All successful candidates will be subject to an enhanced selection process including safeguarding-focused interviews and a rigorous due diligence process.

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