DAVID FURLONGER: Auto speedbumps hold back progress in Africa’s motor industry
War in Ethiopia, the collapse of the sector in Algeria and Nigeria’s continued failure to meet policy commitments are among the hindrances
Proponents of the concept of continent-wide vehicle manufacturing are confident it will come about, pointing to the successful introduction of automotive-friendly policies in various other countries. Encouraged by them, and by the adoption of the African Continental Free Trade Area on January 1, the SA-based African Association of Automotive Manufacturers (AAAM) is negotiating with several other governments to enable the creation of an interlinked set of regional industries.
A kick-start is urgently needed. Africa, with 1.3-billion people, accounts for about 17% of the world’s population but barely 1% of vehicle sales. In 2020, out of a global market of 78-million, it contributed 912,863. Of those, SA sold 380,206, Egypt 219,732 and Morocco 133,308...
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