Last frontier: prospects and policies for Africa’s automotive industry

Anthony Black & Thomas McLennan’s 2015 paper The Last Frontier: Prospects and Policies for the Automotive Industry in Africa is an interesting read for local OEMs and component suppliers and points to growing vehicle demand in Sub-Saharan Africa (SSA). From their paper-

  • Over the next five years it is predicted that seven out of the 10 fastest growing countries in the world will be in Africa.
  • Imports of light vehicles into SSA (excluding South Africa) grew at 15.3% per annum from 2003-2013.
  • Passenger vehicle market will exceed 10 million units by 2030, which will make it comparable to the projected market in South America.

This article looks at the key points of their paper, including their analysis of current and future market demand, production and trade across the region and how the continent can begin to meet this booming demand by developing its own industry.

Read the full article in the Durban Automotive Cluster newsletter.

Mbongeni Ndlovu

I am an Africanist and Development Economist by profession and have seven years of experience in economic development research and its application. My research focuses primarily on the automotive, clothing and footwear industries. Most recently, I have contributed to the development of a Sub-Saharan African Automotive Pact model for the African Association of Automobile Manufacturers (AAAM); developing South Africa’s Retailer-Clothing, Textiles and Footwear (R-CTFL) Masterplan; and developing South Africa’s Yellow Metals Masterplan.