12 private sector associations in Africa and Europe to develop automotive industry
A memorandum of understanding (MoU) was signed virtually between 12 Automotive Associations within the ambit of the EU – Africa Business Forum 2022 on 16 February with the aim of driving the development of the Automotive Industry in Africa. The Automotive sector whilst key for the industrialisation of Africa is often associated with several challenges including, persistent market fragmentation, lack of regulatory alignment between African countries and the two continents, industrial and trade policies not conducive to local and foreign investment, lack of access to finance for consumers, local suppliers, and affordability. However intra-African trade can be bolstered and diversified by developing a Pan African Auto Pact, which aims to expand the African new vehicle market from 1 to 5 million units and connecting African regions for the common good. A “coalition of the willing” will see the development of manufacturing sites and allied industries and services – both for the OEM an...