Write Hatem Mohamed<\/p>\n\n\n\n
US$1 billion financing commitment supports automotive industrialisation as Egypt and South Africa launch joint manufacturing initiatives to strengthen regional supply chains<\/strong><\/p>\n\n\n\n The African Export-Import Bank (Afreximbank), in partnership with the African Association of Automotive Manufacturers (AAAM), the African Continental Free Trade Area (AfCFTA) Secretariat, Egypt\u2019s Ministry of Trade and Investment, and South Africa\u2019s Department of Trade, Industry and Competition, hosted the Africa Automotive Investment Forum on the sidelines of the Alamein Africa Forum in El Alamein, Egypt.<\/p>\n\n\n\n The two-day forum brought together senior African policymakers, private-sector original equipment manufacturers (OEMs), automotive component manufacturers and investors to explore opportunities for expanding automotive production, attracting investment and strengthening regional value chains across the continent.<\/p>\n\n\n\n The event focused on identifying the policy reforms needed to accelerate automotive industry development, facilitating direct engagement between investors, policymakers and manufacturers, and promoting joint ventures, technology transfer agreements and supply partnerships capable of generating future investment opportunities.<\/p>\n\n\n\n Afreximbank Commits US$1 Billion to Africa\u2019s Automotive Sector<\/strong><\/p>\n\n\n\n Afreximbank reaffirmed its commitment to allocate US$1 billion to financing Africa\u2019s automotive sector as part of its broader strategy to promote industrialisation, expand intra-African trade and accelerate industrial development across the continent.<\/p>\n\n\n\n The Bank identified the automotive industry as a strategic driver of economic transformation, with the potential to strengthen manufacturing capabilities, improve economic resilience, create skilled employment opportunities and reduce Africa\u2019s dependence on imported vehicles.<\/p>\n\n\n\n The forum also prioritised partnerships between global automotive manufacturers and African enterprises, with a focus on technology transfer, engineering expertise and the development of local small and medium-sized enterprises within automotive supply chains.<\/p>\n\n\n\n Speaking on the significance of the initiative, Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, said the automotive sector was central to advancing Africa\u2019s industrialisation and achieving the structural transformation championed by the Bank.<\/p>\n\n\n\n She explained that developing regional automotive value chains directly supports Afreximbank\u2019s mandate to promote intra-African trade under the AfCFTA framework.<\/strong><\/p>\n\n\n\n According to Awani, investment in the African automotive ecosystem can stimulate manufacturing, create skilled jobs, attract high-impact investments and accelerate economic diversification, positioning Africa as a more competitive participant in the global industrial economy.<\/p>\n\n\n\n She also highlighted significant investment opportunities in vehicle and component manufacturing, supported by Africa\u2019s growing skills base and access to strategic raw materials, including lithium, cobalt, manganese, nickel, copper, iron and steel.<\/p>\n\n\n\n Afreximbank is championing the development of an integrated pan-African automotive manufacturing ecosystem encompassing vehicle and component production, supported by regional supply chains and increased intra-African trade.<\/p>\n\n\n\n Egypt and South Africa Sign Automotive Manufacturing Joint Venture<\/strong><\/p>\n\n\n\n A key outcome of the forum was the signing of a joint venture agreement between South Africa\u2019s Malben Engineering and Egypt-based industrial conglomerate El Araby Group to establish a joint platform for manufacturing automotive components for Egyptian, South African and wider African markets.<\/p>\n\n\n\n The partnership combines El Araby Group\u2019s industrial, engineering and technological capabilities with Malben Engineering\u2019s more than 50 years of experience in manufacturing and forming metal automotive components.<\/p>\n\n\n\n The initiative is intended to strengthen regional manufacturing capacity, expand local component production and support the development of more integrated automotive supply chains across Africa.<\/strong><\/p>\n\n\n\n The agreement represents a practical example of the cross-border industrial partnerships that Afreximbank and its partners seek to encourage as part of the continent\u2019s broader automotive investment agenda.<\/p>\n\n\n\n AfCFTA and AAAM Strengthen Cooperation<\/strong><\/p>\n\n\n\n The forum also marked a significant step towards closer cooperation between the AfCFTA Secretariat and the African Association of Automotive Manufacturers, with the two organisations signing a Memorandum of Understanding (MoU) to support the development of Africa\u2019s automotive industry.<\/p>\n\n\n\n The agreement establishes a framework for cooperation in implementing the Strategy for the African Automotive Sector under the AfCFTA framework.<\/strong><\/p>\n\n\n\n Key areas of collaboration include automotive Rules of Origin, customs procedures and trade facilitation, automotive policies and standards, capacity building, regional supplier development, value-chain integration, mineral beneficiation, investment mobilisation and emerging automotive technologies.<\/p>\n\n\n\n The partnership will also support ongoing efforts by the AfCFTA Secretariat and Afreximbank to advance the AfCFTA Automotive Investment Plan, focusing on mobilising investment and strengthening competitive regional automotive production networks.<\/p>\n\n\n\n Tarek Mosaad, President of the African Association of Automotive Manufacturers, said the agreement on AfCFTA Rules of Origin provides an important foundation for a more integrated African automotive industry.<\/p>\n\n\n\n He emphasised the need to translate policy commitments into tangible industrial outcomes through factory development, stronger supplier networks, job creation and increased intra-African trade.<\/p>\n\n\n\n Mosaad identified three priorities for the association: increasing local content through regional value chains, facilitating cross-border movement of automotive products, and ensuring Africa plays a meaningful role in shaping the future of mobility.<\/p>\n\n\n\n He also stressed that investors should be able to view Africa as an integrated investment opportunity rather than a collection of 54 separate markets.<\/p>\n\n\n\n AfCFTA Identifies Priorities for Regional Automotive Production<\/strong><\/p>\n\n\n\n Wamkele Mene, Secretary-General of the AfCFTA Secretariat, outlined three priorities for advancing the African Automotive Sector Strategy: developing investment-ready projects and competitive production locations, strengthening regional supplier networks and deepening localisation, and establishing commercially viable regional production.<\/p>\n\n\n\n These priorities are intended to encourage investment, improve manufacturing competitiveness and expand the role of African businesses in automotive value chains.<\/strong><\/p>\n\n\n\n The initiative also seeks to strengthen the links between automotive manufacturing, regional trade integration and the value addition of Africa\u2019s mineral resources.<\/p>\n\n\n\n Egypt\u2013South Africa Business Council Established<\/strong><\/p>\n\n\n\n Another major outcome of the forum was the establishment of a joint Egypt\u2013South Africa Business Council to develop bilateral trade and investment projects across key sectors.<\/p>\n\n\n\n The council will focus on automotive manufacturing, mining and mineral resources, renewable energy, agriculture and food production, pharmaceuticals, and transport and logistics infrastructure.<\/p>\n\n\n\n It will also seek to leverage the Suez Canal and national ports in both countries to facilitate trade between northern and southern Africa, creating additional opportunities for businesses and investors.<\/p>\n\n\n\n The initiative is expected to provide a platform for stronger commercial engagement between Egyptian and South African companies while supporting broader regional economic integration.<\/p>\n\n\n\n Industry Visits Highlight Egypt\u2019s Manufacturing Potential<\/strong><\/p>\n\n\n\n To complement policy discussions with practical industry exposure, forum delegates participated in organised visits to Nissan Motor Corporation, General Motors Egypt, Al Mansour Automotive and automotive component manufacturer Mobica in 6th of October City.<\/p>\n\n\n\n The visits provided first-hand insight into Egypt\u2019s automotive industrial base, including vehicle assembly, localisation, supplier development and manufacturing capabilities.<\/p>\n\n\n\n They also highlighted opportunities for investment, technology transfer and cross-border value-chain integration that could help strengthen Africa\u2019s position as a competitive automotive manufacturing hub.<\/p>\n\n\n\n Africa\u2019s Vehicle Demand Expected to Reach 5 Million by 2035<\/strong><\/p>\n\n\n\n With African vehicle demand expected to reach 5 million vehicles by 2035, alongside growing global interest in new energy vehicles, the forum highlighted opportunities to accelerate domestic industrialisation through automotive manufacturing and renewable energy development.<\/p>\n\n\n\n Participants emphasised the importance of appropriate policy incentives and affordable financing to stimulate consumer demand, attract capital investment and expand local production capacity.<\/p>\n\n\n\n The discussions underscored the potential of coordinated investment, regional trade integration and cross-border industrial partnerships to transform Africa\u2019s automotive sector into a stronger contributor to economic diversification, employment generation and sustainable industrial growth.<\/p>\n","protected":false},"excerpt":{"rendered":" Write Hatem Mohamed US$1 billion financing commitment supports automotive industrialisation as Egypt and South Africa launch joint manufacturing initiatives to strengthen regional supply chains The African Export-Import Bank (Afreximbank), in partnership with the African Association of Automotive Manufacturers (AAAM), the African Continental Free Trade Area (AfCFTA) Secretariat, Egypt\u2019s Ministry of Trade and Investment, and South 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