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The development of regional value chains could see new vehicle sales increase from 1 million to 5 million units a year across Africa, according to Afreximbank.
Speaking at a recent online seminar to promote the African continent’s premier trade event, the Intra-African Trade Fair (IATF2021), to be held in Kigali, Rwanda, from 6 – 12 September 2021, senior trade facilitator Gainmore Zanamwe, said there were bright prospects for the sector.
The Automotive Tradeshow and African Association of Automotive Manufacturers (AAAM) Automotive Forum at IATF under the theme "Building Bridges for a successful AfCFTA", would be a critical base from which to drive growth through the development of intra-African partnerships, Zanamwe said.
The value of collaboration around automotive manufacturing in Africa was highlighted as the African Export-Import Bank (Afreximbank), in collaboration with the African Union, concluded a string of virtual events raising awareness of IATF2021 and its intent.
Dave Coffey, CEO of the African Association of Automotive Manufacturers (AAAM) highlighted the huge potential of African markets to be the next major opportunity for the global and domestic automotive sector with its young demographic profile, rapid population growth and urbanisation, burgeoning middle class and technology all suggesting exponential growth in demand. “We regard the ‘Pan African Auto Pact’ as the potential gamechanger for the development of the African automobile market, through its potential to connect African regions to create a harmonised portfolio with distributed value chains and manufacturing, started with a ‘coalition of the willing,” he said.
In addition to the immense trade and investment opportunities proffered by the AfCFTA, the event also highlighted the importance of attending the IATF2021 for all those involved in African trade and investments. IATF2021 will provide a unique and valuable platform for businesses to explore a single integrated African market of over 1.3 billion people with a combined GDP of over US$2.5 trillion.