After 46 years of operation once a pride of the nation, Neoplan Ghana Limited, is to be shut due to financial challenges. An institution that could employ about a thousand employees at the peak goes down. The government being the major shareholder with 55% stake, they remained a strong hope for cash injection but was never done. There may be a better reason for doing that, but this is a blow to a country that seeks to develop industries and consumes what it makes. A sad day for local industry! and employment. Neoplan is a potential brand that could have exported to neighbouring countries and done better under the AfCTA agreement.
Below is an article offering further insight into the matter.
The Neoplan (Ghana) Limited, a bus manufacturing company has been in a existence since 1974. Since its establishment the Company has made history in producing over 4,000 buses for Government Institutions, Universities, Metro Mass Transit (MMT), GPRTU and Private Individuals/Companies.
In 2002, President Kufuor’s Government contracted Neoplan (Ghana) Limited to build 450 DAF/VDL buses for Metro Mass Transit, this contract ended in July 2010 and Neoplan (Ghana) Limited has since not gotten any contracts from successive Governments.
Prof. Mills and Mahama’s Government never responded to the cries of Neoplan (Ghana) Limited. Akufo-Addo’s Government too has not made any meaningful efforts to revamp the Neoplan (Ghana) Limited. This is very sad considering the fact that Government of Ghana has 55% shares in the company and is the majority shareholder, and the remaining 45% is for a private company known as Fadoul Group.
OFFICIAL CLOSE DOWN – NEOPLAN GHANA
An internal memo from Neoplan (Ghana) Limited dated 15/01/2020 intercepted by Concerned Voters Movement(CVM) indicates that the Company would officially close down all its branches on the 31st of January 2020. The closure is largely due to the lack of support and Contracts from the Government which is the majority shareholder as well as recurring monthly losses.
As the result of the closure, all employment contracts with Neoplan (Ghana) Limited will be terminated by 31st January 2020.
According to President Akufo-Addo he is constantly looking for employment opportunities for our young people and that Ghana’s biggest issue is jobs for young people. On this basis President Akufo-Addo has no choice but to see the revamping of Neoplan (Ghana) Limited.
We are urging President Akufo-Addo to intervene and save the collapsing Neoplan (Ghana) Limited since his appointees at the Transport Ministry have failed woefully to support the Company.
Government has an obligation towards Ghanaians, the Government cannot continue to rely on the importation of Chinese, Korea and Indian buses at the detriment of Neoplan (Ghana) Limited, a 55% Government owned Company. This is absolutely unacceptable.
Razak Kojo Opoku (CVM Founder and President)
A NEW BUS MAKING COMPANY
Once again a national has been nailed. What the public fears is for the government (current or future) not to get up one day and announce that the government is setting up a new bus assembling company after Neoplan demise. Now all of the a sudden there would be unbeatable arguments and justifications for setting up a bus assembling plant only with a different name. Something similar to the national airline saga. Only two things were required here. Government to inject cash and also protect the market with good policies. Why the lack of will do so is shocking.