MPHO DIPELA: Africa mustn’t be a dumping ground for cast-off European vehicles

Africa’s role in the global automotive industry is limited, accounting for less than 1% of global production, with Morocco and SA dominating that space. 

Yet the continent’s automotive industry is forecast to reach a value of more than $42bn by 2027. And while SA and Morocco are two of the largest exporters, the rest of Africa remains a huge net importer of vehicles and parts, including used vehicles from the rest of the world.

A 2021 report published by the UN Environment Programme confirms that millions of used vehicles exported from Europe, the US and Japan to developing countries are of poor quality. That significantly adds to Africa’s carbon footprint and hampers efforts to mitigate the effects of climate change.

As many as 4-million used vehicles are imported into Africa annually. The World Economic Forum estimates that Africa is home to as much as 40% of the world’s used vehicles, of which 80% do not meet basic emissions standards.

At a recent Intra-Africa Trade Fair, former SA public enterprises minister Alec Erwin warned that dumping old vehicles in Africa will impede progress in addressing climate change and result in the failed agenda of consecutive UN climate change conferences (COPs).

According to the UN, the transportation sector accounts for nearly a quarter of global greenhouse gas emissions. This is especially as developed countries have increasingly sent their used vehicles to developing countries — a trend enabled by a lack of effective standards and regulations.

Africa needs to ensure that its market does not become saturated with these vehicles by implementing stronger policies to ensure imported vehicles are better regulated, and by preventing countries from exporting cars with failing safety standards. Kenya stands out as a prime example in this regard, refusing to allow vehicles older than 10 years to be imported into the country for sale. All African countries should follow suit and ensure that this system is phased out.

Likewise, European governments and automotive industries should be held to account in ensuring that appropriate systems are put in place to recycle vehicles at their end of life. This is especially critical in the run-up to 2035, when the EU’s ban on the sale of new, fossil fuel-powered cars is expected to come into effect, and which will gradually see more such vehicles enter the second-hand market.

Furthermore, if the continent was able to convert demand for used vehicles from Europe into demand for affordable new vehicles produced in Africa, countries such as SA and Morocco could benefit greatly from establishing and developing new vehicle assembly plants.

For African automotive industries to thrive they need preferential access to domestic and regional markets to boost sales, with further support under the African Continental Free Trade Agreement. As 2035 approaches African industries need to seize the opportunity to become manufacturing hubs for the production and export of electric vehicles, rather than relying on imports.  

That would represent a significant coup for African automotive industries in terms of job creation, economic growth and minimising the damage caused by air pollution — which is why governments, original equipment manufacturers and dealers must work together to create sustainable solutions and chart the way forward.

Dipela is chairperson and shareholder of Legacy Motor Group.