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SA commits to growing Africa’s automotive industry

SA commits to growing Africa’s automotive industry

from NJABULO BUTHELEZI in Durban, South Africa
DURBAN – SOUTH Africa’s Coega Development Corporation (CDC) has extended its automotive expertise to Senegal.

CDC concluded a deal with Senegalese Investment Agency (PAIMRAI) at the Intra-African Trade Fair Conference in Durban.

The former’s role is to elaborate a strategy for the development of the automotive industry in Senegal.

Dr Ayanda Vilakazi, CDC Head of Marketing, Brand and Communications, said the agreement was in realization of the Sub-Sahara Africa automotive sector currently accounting for less than 3 percent of global production.

This is against 30 percent for China, 22 percent for Europe and 17 percent for North America.

Vilakazi said the motorisation rate in this region was very low in 2018, with 42 cars per 1 000 inhabitants.

This against 837 in the United States, 173 in China and 214 in South Africa, for a world average of 180 cars per 1 000 inhabitants.

“This rate hardly exceeds 3 percent in Senegal, which means that only 30 people out of 1 000 own a private vehicle,” Vilakazi said.

Apart from Nigeria and Ghana, the automotive industry remains nascent in the member countries of the Economic Community of West African States, whose process of industrialisation faces the threat of used car imports from Europe, Japan, United States, Canada, and other countries.

The Intra-African Trade Fair took place from November 15-21, inspired by the African Continental Free Trade Area (AfCFTA), – a single market for goods and services across 55 countries, aimed at boosting trade and investment.

– CAJ News

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