There are significant opportunities to develop component manufacturing in Africa to supply vehicle manufacturers, and each country can play a role in the automotive value chain, industry organisation African Association of Automotive Manufacturers (AAAM) CEO Victoria Backhaus-Jerling has said.
Manufacturing for the automotive value chain would also support the beneficiation of resources in each country, she said on the second day of the Manufacturing Indaba, on July 15.
The African Continental Free Trade Area (AfCFTA) can be a significant driver of localisation and manufacturing on the continent. However, countries must have a policy framework in place to develop manufacturing.
There were opportunities for component manufacturing in Africa, and the AfCFTA created opportunities for countries to integrate and trade, concurred South African industry financier Industrial Development Corporation automotive and transport equipment strategic business unit head Joy Balepile.
The scale of the market created by the AfCFTA can help countries and industries to attract foreign direct investment and help economies to grow, as they provide products and services into new markets.
