Afreximbank commits $1bn to African automotive sector, backs regional supply chains

Afreximbank said opportunities existed in vehicle and component manufacturing, particularly through partnerships that could transfer technology and build local production capacity.

Africa’s deposits of minerals such as lithium, cobalt, manganese, nickel and copper could also support the development of automotive supply chains, including those for electric vehicles, Awani said.

The forum saw South Africa’s Malben Engineering and Egypt’s El Araby Group sign a joint venture agreement to manufacture automotive components for the Egyptian, South African and wider African markets.

The partnership combines El Araby’s industrial and engineering capabilities with Malben’s more than 50 years of experience in manufacturing and forming metal automotive components, the bank said.

African Association of Automotive Manufacturers President, Tarek Mosaad, said the agreement on AfCFTA automotive rules of origin provided a basis for developing a more integrated regional industry.

He said priorities included increasing local content, improving cross-border movement of automotive products and strengthening Africa’s role in the global mobility industry.

“Investors are not looking at 54 separate African markets. They are looking at one integrated opportunity,” Mosaad said.

AfCFTA Secretary-General, Wamkele Mene, said the continent needed investment-ready projects, competitive production locations and stronger regional supplier networks to advance its automotive strategy.

The AfCFTA Secretariat and the African Association of Automotive Manufacturers also signed a memorandum of understanding to cooperate on implementing the strategy, including customs procedures, trade facilitation, automotive standards, supplier development and investment mobilisation.

The forum also saw the establishment of an Egypt-South Africa Business Council to develop trade and investment projects in sectors including automotive manufacturing, mining, renewable energy, agriculture and transport infrastructure.

Delegates visited vehicle manufacturers Nissan Motor Corporation, General Motors Egypt and Al Mansour Automotive, as well as component producer Mobica, to examine manufacturing and supplier-development opportunities.

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