Allen & Overy advises IOOF on its AUD1.44 billion acquisition of MLC Wealth  - Allen & Overy

Kantanka Automobile Co Ltd is an automotive company founded in 1998 and based in Accra, the capital of Ghana.

Kantanka’s concept is comparable to that of Innoson from Nigeria (see above). Prefabricated parts from China. Final assembly is then carried out in the local production facility. The product range includes SUVs and pickups. In addition, the electric car Kantanka Amoanimah EV has recently enriched the product range for customers. In-house engineering services or the use of locally manufactured components do not seem to play a role.

Kantanka is criticised for the ambitious technical equipment of its cars. This makes the cars affordable for only a very small part of the Ghanaian population. For example, there are models with voice control. A partially armoured high-end SUV was also presented. The Ghanaian government supports Kantanka with orders, among East Africa things.

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Kantanka model of 2015
Conclusion – The Own Innovative Strength is Decisive
Car manufacturing is a complicated business. It requires a high capital investment, strong know-how and cooperation with a large number of qualified suppliers. European, American and Asian companies have optimised their production over the last decades. Gaining foothold as a new (African) competitor in such a market environment seems to be an almost impossible task.

Nevertheless, the task is worthwhile: essential steps of the car production are shifted to Africa. This not only increases economic output, but also creates jobs and know-how. Due to the cooperation with supplier companies, an entire automotive industry is growing. It is therefore easy to understand why many African countries are eyeing this idea.

Mobius Motors’ strategy seems to be promising. The company focuses on a single vehicle model and strives to make it as cost-effective as possible. The commitment to local production also of supplier parts in Kenya has been very well received by the people, who therefore turn a blind eye to the lower quality standard.

A similarly promising approach is that of Kiira. The Ugandan state-owned company focuses strongly on its own innovation and wants to have as many steps of value creation as possible in its own country. The fact that the electric bus Kayoola EVS is ultimately assembled from imported parts seems to be more of a means to an end. Due to the cooperation with CHTC Motor, a knowledge and technology transfer is taking place from which Uganda will benefit in the medium term.

The business models of Innoson and Kantanka are geared to the mere final assembly of imported concepts and parts. This is neither associated with outstanding engineering performance nor does it bring significant added value to the home countries. Whether Nigeria and Ghana will be able to build their own automotive industry in this way is more than questionable.

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Interior design of Kiira EV SMACK of 2014
kiira ev smack interior design car africa mlc properties
Interior design of Kiira EV SMACK of 2014