AfCFTA seeks to boost Africa's automotive industry
By the AFREEQUE newsroom, based on Business Day (South Africa)
Illustrative image · Quang Nguyen Vinh · Pexels · Licence PexelsThe African Continental Free Trade Area is expected to help develop automotive production, supplier chains and employment across the continent. The agreement now includes rules of origin for the sector, whose implementation is expected to attract investment and production, according to Michael Whitfield of Business Day.
The Agreement Establishing the African Continental Free Trade Area (AfCFTA) provides a framework for developing Africa's automotive industry by connecting markets, manufacturers and regional suppliers, according to Business Day. The challenge now is to turn the automotive rules of origin agreed under the AfCFTA into investment, production and jobs.
Manufacturers could rely on a regional model in which one country assembles vehicles while others produce wiring harnesses, tyres, glass, batteries or plastic parts. The arrangement could also incorporate mineral processing, logistics corridors, ports, distribution centres, financing and training, according to Business Day.
A proposed automotive pact between the Southern African Customs Union and Egypt, presented at the Africa Automotive Investment Forum held last month in Alamein, illustrates this approach of industrial complementarity, reports Business Day. The automotive sector is presented as a means of creating value across several economic branches rather than concentrating production in a single country.
