CRAG signs MoU with Bank of Africa to expand vehicle financing for members

The Car Rental Association of Ghana (CRAG) has signed a Memorandum of Understanding (MoU) with Bank of Africa Ghana Limited to provide a dedicated vehicle finance facility aimed at expanding and modernising the fleets of its members.

The agreement was signed at the Bank of Africa Head Office in Accra and is expected to significantly improve access to vehicle financing within the car rental industry.

Under the arrangement, CRAG members in good standing can access up to 90 per cent financing for the purchase of new vehicles or used vehicles that are less than five years old. The facility comes with a maximum loan tenor of 60 months and a fixed interest rate of 15 per cent per annum.

Beneficiaries are required to make a 10 per cent deposit on the cost of the vehicle. In addition, members will pay a one per cent flat facility fee and a one per cent flat arrangement fee on the approved loan amount, both payable upfront.

Speaking at the signing ceremony, Executive Director for Business Development at Bank of Africa Ghana, William Boateng, said the partnership forms part of the bank’s commitment to supporting productive sectors of the economy.

He explained that the MoU allows CRAG members to be treated under a special framework, ensuring faster processing and more flexible financing compared to the bank’s usual procedures.

CRAG President Michael Sarpong described the agreement as a major milestone for the association, noting that limited access to financing has long affected members’ ability to acquire newer vehicles.

He said the facility would help improve fleet quality, enhance service delivery and support Ghana’s tourism industry, where car rental services play a critical role.

According to him, the MoU is the first of its kind for the association and is expected to drive growth, sustainability and improved fleet management across the sector.