MOTORING NEWS - The development and promotion of a cohesive automotive strategy for the African continent is gaining new impetus due to the strategic vision and guidance of the African Association of Automotive Manufacturers (AAAM)
A delegation from AAAM, led by Jeff Nemeth, chairman of AAAM as well as president and CEO of Ford Motor Company sub-Saharan Africa region, visited Nigeria’s capital city, Abuja, to engage with government and industry leaders.
The programme included discussions with President Muhammadu Buhari, along with government ministers and representatives from Nigeria’s National Automotive Design and Development Council (NADDC) and the National Automotive Manufacturers’ Association (NAMA). This was intended to create the framework for policy development to support the growth of the local industry.
Aim of the AAAM
AAAM was inaugurated on 25 November 2015 by founding members BMW, Ford, General Motors, Nissan, Toyota and Volkswagen, focusing on key markets of the African continent.
“The aim of the African Association of Automotive Manufacturers is to unlock the economic potential of the African continent by promoting a policy environment that is conducive to the development of the automotive sector,” says Jeff Nemeth.
“As the African continent becomes increasingly important within the global economy, it is crucial that we develop an auto sector strategy backed up by incremental investments in infrastructure, skills development and in-market localisation programmes.
The programme included discussions with President Muhammadu Buhari, along with government ministers and representatives from Nigeria’s National Automotive Design and Development Council (NADDC) and the National Automotive Manufacturers’ Association (NAMA). This was intended to create the framework for policy development to support the growth of the local industry.
Aim of the AAAM
AAAM was inaugurated on 25 November 2015 by founding members BMW, Ford, General Motors, Nissan, Toyota and Volkswagen, focusing on key markets of the African continent.
“The aim of the African Association of Automotive Manufacturers is to unlock the economic potential of the African continent by promoting a policy environment that is conducive to the development of the automotive sector,” says Jeff Nemeth.
“As the African continent becomes increasingly important within the global economy, it is crucial that we develop an auto sector strategy backed up by incremental investments in infrastructure, skills development and in-market localisation programmes.
This will make new vehicles more affordable, boost the industrialisation of the economy and lead to the growth of middle-income households, which will be the main driver for new vehicle sales,” Nemeth says.
Nigerian focus
Outside of South Africa, which has a well-developed world-class automotive industry, Nigeria is recognised as a strategic market over the long term due to its demographics.
Nigerian focus
Outside of South Africa, which has a well-developed world-class automotive industry, Nigeria is recognised as a strategic market over the long term due to its demographics.
Although Nigeria is recognised as Africa’s largest economy, the automotive sector is relatively small, with an estimated 44 vehicles per 1,000 inhabitants, according to Deloitte Africa’s Automotive Insights, published in April 2016.
“This is far below the global average of 180 vehicles per 1,000 inhabitants, and lower than other developing regions such as Latin America (176) and Asia, Oceania and the Middle East (79),” the report indicates.
