However, Africas auto industry, valued at 30.44 billion in 2021, is expected to increase by nearly 40 to 42 billion by 2027.
With demand rising across the board, and an expected switch to the exclusive use of electric vehicles by 2035 complicating the position, it is clear that Africa has to take control of the auto industry if it is to ensure that the continent will be able to utilise in full the expanded trade opportunities of the AfCFTA.
It is with this in mind that Afreximbank and the private sector have been working to develop a sustainable automotive industry in Africa. The Afreximbank Automotive Programme, for example, is a comprehensive three-pronged strategy to achieve this aim.
It is working with the African Association of Automotive Manufacturers AAAM to harmonise automotive standards, develop a focused training programme for the public and private sectors and provide financing to industry players across the value chain. Afreximbank has committed 1 billion to the industry through direct financing and partnerships.
The two organisations are collaborating to provide financing to industry players along the whole automotive value chain, including lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing, amongst others.
