Mike Whitfield, chair of Nissan Africa South and MD of Nissan Egypt. Picture: SUPPLIEDAccording to the Deloitte Africa Automotive Insights report, in 2016 the motorisation rate on the continent stood at 44 vehicles per 1,000 inhabitants, compared with the global average of 180 vehicles per 1,000 inhabitants.
The automotive manufacturing sector is a critical contributor to Africa’s GDP, economic activity and job creation. The SA government has committed itself to supporting the automotive industry through programmes such as thewhich aims to double the production capacity in SA in the next 15 years and improve the automotive industry’s competitive levels to that of leading international competitors.
Unlocking the potential of the SA automotive industry begins with collaboration. Relevant stakeholders, from governments and financial institutions to global Original Equipment Manufacturers and first-tier suppliers, must collectively pool their resources across regions to commit their efforts to the development and industrialisation of the continent.
To realise this, policy such as the African Continental Free Trade Agreement will be important as the automotive industry has largely been fragmented in Africa and intra-African trade continues to operate at suboptimal levels due to tariffs and taxes. Countries that may be grappling with inconsistent automotive policy can redress their issues by working with industry partners such as the African Association of Automotive Manufacturers to ensure that policy that stimulates growth and builds a sustainable auto industry is backed by tangible action and that relevant stakeholders are held accountable.