Ghana wants to offer car making companies Volkswagen and Nissan tax breaks of up to 10 years.
The move according to the government is intended to attract such automakers to the West African economy.
Setting up local manufacturing plants in Ghana, according to the government should grow its economy and create jobs.
Last year German car-maker, Volkswagen announced plans to establish an assembling plant in Ghana.
German Chancellor Angela Merkel made the revelation during her trip to the West African nation in September last year.
Angela Merkel, said the assembling plant should create jobs for young Ghanaians in the car manufacturing sector.
Nissan has also agreed to set up auto-assembly plants in Ghana if the government offers an official incentive plan.
French automobile firm Renault has also expressed interest in establishing a plant in Ghana as a long term project.
This year Toyota and Suzuki announced a joint venture to produce vehicles in Ghana.
The move to offer such car makers tax breaks is considered an incentive enough to get them to execute their plans.
Ghana’s Trade Minister Alan Kyerematen has said that the full 10-year tax break will only apply to companies building vehicles in Ghana.
There will also be a five year tax holiday available for partial manufacturing of vehicles as well.
He said import duties on new and used vehicles will be increased to 35% from 5%-20% to encourage the purchase of locally built cars.