Boosting Africa’s Automotive Sector: The Call for Political Will

The automotive sector in Africa shows great potential for expansion, and industry stakeholders strongly urge governments across the continent to demonstrate robust political determination in enforcing policies that will facilitate its growth. During the second Africa Prosperity Dialogues held in Aburi, Eastern Region, participants underscored the imperative for Africa to leverage its resources and capabilities to meet the escalating demand for vehicles, both domestically and internationally.

In particular, they advocated for the prohibition of aging vehicles, an elevation in taxes and duties on imported fully-built cars, and the enactment of policies on components manufacturing. They are of the view that such measures will incentivize local manufacturers to meet market demands and entice more companies to establish assembling plants throughout the continent.

In an interview with the Ghana News Agency, Mr Salem Kalmoni, Managing Director of Japan Motors Trading Company Limited, underscored the underutilized capacity of their assembling plant in Tema, emphasizing its potential to double its annual car production. He emphasized the imperative for unwavering political determination to enforce existing automotive policies, which will ultimately result in more competitive prices for locally assembled vehicles.

Similarly, Mr Francis Kudjordjie, General Manager of Katanka Automobile, called for a purposeful endeavor to manufacture a variety of automobiles in Africa, including electric vehicles, bicycles, and tricycles. He stressed the necessity for government assistance to drive this initiative, contending that it could lead to Africa producing its own cars within the next five years.

Dr Theo Acheampong, an Economist, emphasized the significance of advocacy in eliminating the obstacles impeding the growth of the automotive sector. He highlighted how the establishment of assembling plants, coupled with legislation that makes imported vehicles more costly than locally assembled ones, has already piqued interest in locally assembled cars.

Furthermore, Dr Acheampong stressed the need for public advocacy and trade shows to educate people about the safety and quality standards of locally assembled vehicles. He believes that a thriving automotive sector is crucial for creating sustainable jobs and driving economic growth across the continent.

In conclusion, the growth of Africa’s automotive sector hinges on the political determination of its governments to implement supportive policies. The continent possesses the capacity and resources to meet the escalating demand for vehicles, both within Africa and in the global market. With the appropriate enabling environment and government support, Africa could soon emerge as a major player in the automotive industry.