German Chancellor Angela Merkel lauded Ghana here on Thursday for sustaining peace and stability in the country.

Merkel, who stopped over in Ghana as part of a three-nation West African visit, described Ghana as a "vanguard" of democracy and political stability on the continent.

The German leader, who held discussions with her Ghanaian counterpart Addo Dankwa Akufo-Addo on migration, trade and investment, made the remarks in a press briefing.

"We are particularly happy about the prospects of an agreement to be signed today involving Volkswagen. Hopefully, one day the production of vehicles will be here in Ghana," Akufo-Addo said at the press briefing.

The three-leg West African tour will also take Merkel to Nigeria and Senegal.