Autos for Africa? : possibilities and pitfalls for an automotive industry in Africa

• Main Author: McLennan, Thomas
• Other Authors: Black, Anthony
• Format: Dissertation
• Language: English
• Published: University of Cape Town 2016
• Subjects: Economic Development
• Online Access: http://hdl.handle.net/11427/21739

Sub-Saharan Africa (SSA) has grown very rapidly over the last decade. Demand for light vehicles has rapidly increased in this period, albeit from a very low base. Growing demand is almost entirely supplied by the import of used vehicles from the developed world. This has led to an enormous automotive trade deficit in the region where, apart from South Africa, there is almost no domestic production. The dissertation establishes the trends and scale of automotive demand in SSA and then considers the question of whether and how the region can begin to meet this booming demand by developing its own industry. Despite limited industrialisation levels and relatively small domestic markets, some larger countries, such as Nigeria and Kenya, are putting policies in place to encourage domestic production. However, if countries follow individual national strategies it is unlikely that any will have sufficient market scale or investment levels to become sustainable automotive producers. A regional automotive strategy needs to be adopted in SSA in order to attract large scale productive investment.