AAAM, the only African body focusing on the expansion and deepening of the automotive industry across the continent, would like to thank all their stakeholders for their support and contribution in 2020 despite the challenges of the COVID Pandemic.
Some good progress was made on several fronts including the recruitment of several new members from across Africa. However, the most notable being the implementation of Ghana’s Automotive Development Policy which saw Volkswagen commencing its assembly operation, with both Toyota and Nissan committing to do the same with more announcements to follow in early 2021. First steps were also taken to develop a component supplier industry which will be followed up with a visit to Ghana by a delegation of first tier suppliers in early 2021.
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The German automotive industry sees potential in Africa and strengthens its ties to the continent. The German Association of the Automotive Industry (VDA) joined hands with the African Association of Automotive Manufacturers (AAAM) as part of the “PartnerAfrica” project of the German Federal Ministry for Economic Cooperation and Development (BMZ). AAAM is the first Automotive association with a pan-African approach, established in 2015 by global Original Equipment Manufacturers (OEMs).
The partnership-based cooperation between VDA and AAAM is mutually beneficial: in cooperation with local and regional structures it helps the automotive industry to improve access to sometimes difficult markets and at the same time it is in the interest of German development policy to improve local prospects by involving the private sector and to create sustainable jobs and sustainable mobility in partner countries
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The African Association of Automotive Manufacturers (AAAM) participated in the ‘Developing the automotive industry in Africa – opportunities for industrialisation, job creation and green growth’ webinar organised by the Trade Directorate of the European Commission with support from AETS.
The webinar shed light on the development path of the automotive sector in Africa, and explored the potential and challenges for developing EU-African and intra-African automotive value chains, as well as the role of EU trade and investment policy and the African Continental Free Trade Area (AfCFTA).
• Mr. Dave Coffey, CEO, AAAM
• Dr. Markus Thill, President Africa Region, Bosch and Vice-President, AAAM
• Mr. Marius Ochel, Head of Cluster International Association Partnerships Africa & India, German Association of the Automotive Industry (VDA)
• Mrs. Victoria Backhaus-Jerling, Project Manager, leads engagements between the VDA and the AAAM
• Mr. Serge Kamuhinda, CEO Volkswagen Rwanda
• Dr. Francis Mangeni, Head of Trade Promotion and Programs, AfCFTA Secretariat
• Dr. Martyn Davies, Managing Director Emerging Markets and Africa, Deloitte (Moderator)
Click here to download the ‘Are we heading towards vehicles made in Africa at scale?’ presentation by Mr Dave Coffey, Mr Marius Ochel and Mrs Victoria Backhaus-Jerling.
Click here to download the ‘The Pan African Auto Pact Vision for Africa – A supplier’s view’ presentation by Dr Markus Thill.
Speaking at the recent announcement by Nissan to commence vehicle production in Ghana, David Coffey the CEO of the African Association of Automotive Manufacturers (AAAM) commended the Ghanaian government for implementing their progressive automotive policy, which makes it attractive for automotive manufacturers to invest in local auto assembly, which will progress as demand grows to complex manufacturing with locally sourced components to support full CKD. Nissan’s announcement follows Volkswagen and Toyota with Volkswagen already assembling vehicles in Ghana.
Whilst in Ghana, Coffey met potential component manufacturers that were identified with capability in the fields of metal forming, rubber and plastic forming as well as CNC machining. “The objective of this work was to potentially partner these non- automotive manufacturers with current OEM component manufacturers in order to develop their capability to manufacture products, initially for supply to the aftermarket, and then to the assemblers as the volumes grow. With the appointment of Eugene Sangmortey as the AAAM VDA project Manager based in Accra, the drive to develop component manufacturing in Ghana will gain traction” said Coffey.
Hosted by The African Association of Automotive Manufacturers (AAAM)
Powered by Deloitte Africa. Supported by Afreximbank, JETRO, VDA and Afrika-Verein der deutschen Wirtschaft
The Africa Automotive Forum convened expert stakeholders from the automotive industry to unpack opportunities to unlock the potential of the automotive industry in Africa. The programme consisted of three Auto Agenda Councils and virtual conferences characterised by an important exchange of ideas through interactive and impactful engagement. The themes of the engagements were: ‘Enabling policy by government’, ‘Regional value chains’ and ‘Driving affordability and mobility solutions’.
The African Association of Automotive Manufacturers (AAAM) in partnership with the German Association of the Automotive Industry (VDA) is pleased to advise the appointment of two Project Managers that will support the implementation of the “Partner Africa project” between VDA and AAAM to industrialise and grow the automotive sector in Africa. These appointments have been facilitated through the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Victoria Backhaus-Jerling will be based at the NAACAM (National Association of Automotive Component and Allied Manufacturers) offices in Johannesburg and will lead the engagements between the AAAM and the VDA. Victoria’s recent employment in the German government, along with her knowledge of the German automotive industry and her fluency in both English and German equip her well to coordinate and drive automotive development projects in Africa.
Eugene Sangmortey will be based at the offices of the Delegation of German Industry and Commerce in Ghana (AHK Ghana). Eugene’s engineering background and experience in vehicle dealerships and the after-sales environment position him well to develop the automotive ecosystem in Ghana and the Economic Community of West African States (ECOWAS) region.
The Association of African Automotive Manufacturers (AAAM) has been working with the Nigerian Federal Ministry of Industry Trade and Investment through the NADDC on the development of a fully-fledged motor manufacturing industry, enabled by a comprehensive automotive framework which would assist in the industrialisation of Nigeria. This would be scuppered by the 2020 Finance Bill which sees the Customs Service proposing to reduce levies on motor vehicles for the transportation of persons from 35% to 5% and the reduction of duties for the transportation of goods from 35% to 10%.
A critical element of an automotive policy that will drive industrialisation is to sufficiently differentiate tariffs for locally assembled vehicles from tariffs for imported vehicles; should an acceptable level of differentiation not be in place the industrialisation and growth of the automotive sector will not transpire.
“The proposed automotive policy framework requires that the levies/duties be retained at their existing levels with some refinements. The proposed reduction in levies/duties will thus remove any possibility for Nigeria to industrialise and develop the automotive sector” said David Coffey the CEO of AAAM.
You are invited to trade with Africa’s automotive role players at the continent’s largest automotive meeting place and trade show under the theme:
“Building Bridges for a successful AfCFTA”
The Automotive Tradeshow (exhibition), match-making and African Association of Automotive Manufacturers (AAAM) Forum (seminar) puts a dedicated and intentional focus on trade opportunity in the African automotive sector, where explosive growth opportunities are forecast.
The IATF – which connects the African continent’s policy-makers and business – has underlined its ambition to mobilise the automotive sector in Africa.
Africa offers huge opportunity for expansion; but it will take years to unlock fully
Multinational motor companies hoping to develop a sustainable African automotive industry have stopped dreaming of giant leaps forward, in favour of small steps. Volkswagen (VW), Nissan and Toyota are among companies encouraging their SA subsidiaries to create small-scale African joint ventures they hope will eventually reap major benefits. The SA-based African Association of Automotive Manufacturers (AAAM), meanwhile, is helping persuade governments to lift trade and other restrictions that inhibit development of a regional industry
The Association of African Automotive Manufacturers (AAAM) is proud to welcome Egypt’s leading automotive group GB Auto, as its first North African member.
The GB Auto Group is an Egyptian based public listed company with over 60 years of accumulated experience, operating across the complete automotive value chain including the manufacturing, distribution and sales of cars, buses, trucks, construction equipment, three-wheelers and motorcycles, combined with aftermarket service operations, as well as non-banking financial services.
“With a rich, diversified business portfolio and footprint across the region, we strive to embody excellence in every aspect of our business. With our diverse human capital who compile years of experience in their field of expertise, GB Auto Group occupies a remarkable leadership in the markets it operates in”, said Dr Raouf Ghabbour Chairman and Chief Executive Officer of GB Auto. “Joining AAAM will allow us to embark on a mutually beneficial relationship with AAAM as we continue to grow and learn from each other”, added Dr Ghabbour.