Corporate Council on Africa Presents: Automotive Policy Under AfCFTA

On September 12, CCA hosted a virtual session on the Automotive Sector Under AfCFTA. An expert panel including representatives from the African Association of Automotive Manufacturers, Stellantis and Afreximbank, described the tremendous growth of the "world's last automotive frontier." As Africa's population grows and incomes rise, demand for cars could triple from the current 1.3 million cars per year, in addition to significant growth potential for motorcylces and trucks. There is significant potential for Africa to produce most if not all of these units as countries work through the details of implementing a continent-wide policy for the automotive sector, approved by the African Union Council of Ministers in February 2023. Unlocking the market will require developing consumer finance and a mechanism (like dealers) to sell and maintain vehicles to customers. There is significant opportunity for American companies to partner with Africa manufacturers across the value chain, and the automotive sector is likely to offer lessons for industrializing other sectors in Africa. CCA held this virtual event with the generous support of Prosper Africa.