Africa currently occupies a peripheral position within the global automotive industry. Apart from South Africa and Morocco, vehicle assembly is mainly small-scale, and the continent relies heavily on used vehicle imports. However, the market potential is substantial, and regional integration initiatives, such as the African Continental Free Trade Area (AfCFTA) are improving prospects for large-scale investment. Consequently, several countries are developing strategies to promote domestic and regional production. These developments are taking place at a time of rapid technological transition. While African demand for New Energy Vehicles (NEVs) is still low, there are several encouraging developments. These may be in manufacturing vehicles for export and/or import replacement, in the two-wheeler or truck and bus segments, or in the minerals-to-battery value chain where a key question is the potential for adding value to Africa’s abundant critical minerals. In Africa’s rapidly growing urban centres, innovative ‘Mobility as a Service’ (MaaS) business models are being rolled out leading to many local innovations. These opportunities need to be developed in line with each country’s national development priorities, market access potential, and the broader structural transformation trajectory of their economies.

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Africa’s Automobile Sector—Development Opportunities in a Rapidly Changing Industry

  • Tilman Altenburg,
  • Justin Barnes,
  • Anthony Black,
  • Mbongeni Ndlovu

摘要

Africa currently occupies a peripheral position within the global automotive industry. Apart from South Africa and Morocco, vehicle assembly is mainly small-scale, and the continent relies heavily on used vehicle imports. However, the market potential is substantial, and regional integration initiatives, such as the African Continental Free Trade Area (AfCFTA) are improving prospects for large-scale investment. Consequently, several countries are developing strategies to promote domestic and regional production. These developments are taking place at a time of rapid technological transition. While African demand for New Energy Vehicles (NEVs) is still low, there are several encouraging developments. These may be in manufacturing vehicles for export and/or import replacement, in the two-wheeler or truck and bus segments, or in the minerals-to-battery value chain where a key question is the potential for adding value to Africa’s abundant critical minerals. In Africa’s rapidly growing urban centres, innovative ‘Mobility as a Service’ (MaaS) business models are being rolled out leading to many local innovations. These opportunities need to be developed in line with each country’s national development priorities, market access potential, and the broader structural transformation trajectory of their economies.