European, African auto firms sign deal to move Africa auto sector forward

The goals is to expand the African new vehicle market from one of the five million units and connect African regions for the common good

A Memorandum of Understanding was signed virtually between 12 Automotive Associations within the ambit of the EU-Africa Business Forum 2022 on February 16, with the aim of driving the development of the Automotive Industry in Africa. Part of the goals is to expand the African new vehicle market from one of the five million units and connect African regions for the common good.

Signatories to the MOU include: African Association of Automotive Manufacturers, AAAM; Dave Coffey, CEO, German-African Business Association (Afrika-Verein der deutschen Wirtschaft), Dr. Markus Thill; Member of the Management Board, German Association of the Automotive Industry (VDA), Andreas Rade, Managing Director, Kenya Association of Manufacturers (KAM), Ashit Shah, Chairman Automotive Sector, Tunisian Automotive Association (TAA), Myriam Elloumi, Vice President, National Association of Automotive Component and Allied Manufacturers (NACAAM), South Africa, Renai Moothilal, Executive Director, National Association of Automobile Manufacturers of South Africa (NAAMSA)
Others are: Mikel Mabasa, Chief Executive Officer, European Association of Automotive Suppliers (CLEPA), Sigrid de Vries, Secretary General, European Business Council for Africa (EBCAM), Dr. Markus Thill, Member of the Management Board AV, European Automobile Manufacturers’ Association (ACEA), Eric-Mark Huitema, Director General, Nigeria Automotive Manufacturers Association (NAMA), Tokunbo Aromolaran, Chairman, and Automotive Assemblers Association Ghana (AAAG), Jeffrey Peprah, President.

According to them, 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 one to five 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 and supplier sector – and thereby laying the foundation for Pan-African integrated automotive value chains which will incorporate neighboring countries, thus building a regional and continental production network.

The MOU encourages enhanced dialogue contributing to the development of a joint plan to grow the automotive sector in Africa, through integration into the global and European value chains resulting in quality jobs. Whilst encouraging a favorable investment climate to support market integration and innovation and the joint creation of models of standardization, harmonisation and safe mobility. Furthermore, it is intended to advance the debate about sustainability whilst considering alternative powertrains and digital solutions and to further develop affordable mobility solutions leading to a viable African vehicle market.

The setting-up of a permanent round table between the AU, EU, and industry associations in line with the spirit of an established European-African Business Network that will foster the dialogue between Africa and Europe.

Lastly, it encourages the EU to support financially the development of sustainable and smart mobility and affordable vehicle financing solutions to increase the mobility of the population in African cities and support therefore infrastructure development.
Whilst also calling on public authorities to provide programs and financial support for research on alternative powertrains and the value chain of green technology solutions in Africa.

Commenting after the signing of the MOU, David coffey the CEO of AAAM said “The trade and investment climate in Africa can only be improved together. We are convinced that Africa has great potential to develop a promising automotive industry that will provide long-term employment.

“The fact that African and European associations have agreed on key points to further develop the industry on the continent is an important milestone. Now political representatives are to support this by creating the framework conditions for the industry to develop and grow”.


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