Boosting Africa’s Automotive Industry: The Call for Strong Political Will

Industry leaders in Africa are unifying to emphasize the necessity of a robust political commitment from governments across the continent to drive the growth of the automotive sector in response to the increasing demand in the market. During the second Africa Prosperity Dialogues in Aburi, Eastern Region, experts highlighted the continent’s potential not only to meet local demands but also to export products globally. They underscored the critical importance of bold and decisive actions to implement automotive policies that align with the goals of the Africa Continental Free Trade Area (AfCFTA).

Advocates in the industry specifically emphasized the urgency for governments to gradually eliminate the use of outdated vehicles, impose higher taxes and duties on imported fully-built cars, and enact policies to promote local manufacturing of automotive components. This approach, they believe, could significantly increase the production capacity of the local industry to meet market demands and encourage the establishment of assembly plants across Africa.

In an interview with the Ghana News Agency, Mr Salem Kalmoni, Managing Director of Japan Motors Trading Company Limited, emphasized the surplus capacity in Africa to assemble and produce cars and other automotive products. However, Mr Kalmoni stressed that a strong political will is necessary to actualize this potential and maximize existing investment. He noted that with the appropriate support and enabling environment, local assembly plants could flourish, thereby making cars more competitively priced and affordable.

Echoing similar sentiments, Mr Francis Kudjordjie, General Manager of Katanka Automobile, emphasized the need for a concerted effort to diversify the manufacturing of various automobiles in Africa, including electric vehicles, bicycles, and tricycles. He highlighted the continent’s capacity to produce millions of essential automotive components, underscoring the need for political leaders to drive the initiative for the industry’s advancement.

Dr Theo Acheampong, an Economist, supported these calls and advocated for intensified efforts to address the hurdles within the automotive sector. He stressed the pivotal role of the industry in driving industrialization across Africa and suggested that public awareness campaigns, roadshows, and trade exhibitions could elevate the perception of locally assembled cars. Dr Acheampong emphasized that fostering a thriving automotive industry could significantly bolster job creation and economic growth across the continent.

The collective call for strong political commitment within Africa’s automotive sector reflects a critical need to harness the continent’s potential for local production and exportation, leading to economic prosperity and industrial advancement. As industry advocates continue to champion the importance of policy implementation and advocacy, the future of Africa’s automotive industry lies in the balance of political commitment and decisive action.