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.
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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.
The Association of African Automotive Manufacturers (AAAM) is pleased to be able to welcome Motus Africa as its latest member.
Motus Africa is a subsidiary of Motus Holdings Ltd. a diversified non-manufacturing business in the automotive sector with unrivalled scale and scope in South Africa, and a selected international presence mainly in the United Kingdom and Australia and a presence in South East Asia, and Southern and East Africa.
“As Motus Africa, we believe that there are many untapped opportunities to expand our business in Africa and AAAM’s approach to developing the industry through consultation and its regional hub and spoke model, makes for an ideal partner in achieving this.” commented Tim Jaques, Chief Executive Officer of Motus Africa.
At a recent Board Meeting of the African Association of Automotive Manufacturers (AAAM) it was agreed that a second Vice President representing the component manufacturing industry be appointed. This sector is a very important part of AAAM’s automotive development vision for Africa. The current President is Mike Whitfield from Nissan and the current Vice President is Andrew Kirby from Toyota, the new the second Vice President is Dr Markus Thill from Bosch. Office bearers of AAAM are elected on an annual basis.
Mobility Solutions is the largest Bosch Group business sector. It generated sales of 46.8 billion euros in 2019, and thus contributed 60 percent of total sales from operations. This makes the Bosch Group one of the leading automotive suppliers. The Mobility Solutions business sector pursues a vision of mobility that is safe, sustainable, and exciting, and combines the group’s expertise in the domains of personalization, automation, electrification, and connectivity. For its customers, the outcome is integrated mobility solutions. The business sector’s main areas of activity are injection technology and powertrain peripherals for internal-combustion engines, diverse solutions for powertrain electrification, vehicle safety systems, driver-assistance and automated functions, technology for user-friendly infotainment as well as vehicle-to-vehicle and vehicle-to-infrastructure communication, repair-shop concepts, and technology and services for the automotive aftermarket. Bosch is synonymous with important automotive innovations, such as electronic engine management, the ESP anti-skid system, and common-rail diesel technology. Dr. Thill, President Region Africa of Bosch, holds degrees in mathematics and physics, including a doctorate from Université de Paris, and has been responsible for Bosch’s business in Africa since 2014.
The Association of African Automotive Manufacturers is delighted to welcome JETRO as its latest member. AAAM the only African body, focusing on the expansion and deepening of the automotive industry across the continent, by working with governments to shape and implement policies that will attract investors. Thereby unlocking the economic potential of the continent and aligning a global network of stakeholders committed to the development of the Automotive industry in Africa.
Established in 1958, JETRO is a government-related agency under the Ministry of Economy, Trade and Industry in Japan. Its primary role is to promote mutual trade and investment between Japan and the rest of the world through its extensive network of 46 local offices in Japan and 74 overseas offices in 54 countries. These include eight in Africa located in Abidjan, Addis Ababa, Cairo, Johannesburg (the regional hub), Lagos, Maputo, Nairobi and Rabat. A nineth office will open in Accra this year.
“JETRO is proud to have joined the African Association of Automotive Manufacturers (AAAM). We fully support and are aligned with its goals of developing an African automotive ecosystem in which, Japan has been a key player for nearly 60 years. The automotive industry, if well-planned and coordinated at the continental level, is a powerful tool that can drive development and growth” commented Ishihara Yoshiaki, Executive Director, Jetro Johannesburg.