Reliance on used vehicles importation hinders African market

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Reliance on used vehicles is hindering growth of Africa’s automobile market. This is projected to escalate for sub-Saharan Africa (SSA) in the next 15 years, implying that Africa’s demand for vehicles will likely continue to be met by other continents in the foreseeable future.

This was contained in a White Paper, by World Economic Forum , in collaboration with Deloitte, titled: “Connecting countries and cities for regional value chain Integration,” released on Tuesday.

The NAIDP represents the Federal Government’s boldest step at reviving local car assembly in over three decades. The policy, which was introduced in 2014, seeks to encourage local manufacture of vehicles while phasing out the importation of used vehicles. Other motives of the policy include job creation, stimulation of the value chain, diversification of the economy, provision of affordable vehicles for the average Nigerian, as well as boosting foreign direct investment into the country.

Chief Executive Officer of West Atlantic Cold-Chain and Commodities Limited, Henrii Nwanguma, said policy continuity is good, but review to correct course in the light of present realities is best. “Let’s not pretend the auto policy is a perfect document. Besides, there is provision for its review every 5 years. It is two years overdue,” he said.

In his words: “Since the seven-year-old auto policy is being reviewed due to its obvious failure to close the gap, it is an opportunity to look at our country’s overall industrial policy.

The university don said the most critical issue is how to persuade government’s agencies to patronise the local manufacturers as the logic of government is that the total output of the local manufacturers is not adequate to take care of the local demand thus creating some artificial scarcity and high prices for Nigerians.

 

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