Skip to content

Establishing Manufacturing Nodes across the Continent and Leveraging on the AfCFTA

Africa’s key auto hubs, South Africa and Morocco, have hinted at mega and giga factories in their electric cars bid to remain relevant and tap a fast-rising global market. Mineral-rich countries like the Democratic Republic of Congo (DRC), Zambia, and Mozambique are also eyeing the market with big intentions of becoming major suppliers of electric vehicle batteries. For these countries to competitively bid for a major stake in the global electric vehicle market, industry experts say they should form regional value chains to cut cross-border trade costs and barriers to investments. Kenya energy cabinet secretary’s economic advisor, Eric Mwangi, said during a recent webinar on electric mobility in Africa that countries need to package themselves as a regional market to attract investments from original equipment manufacturers (OEMs) with global supply chains. African Development Bank also singles out existing internal combustion engine expertise, the AfCFTA, raw materials and geographical proximity to key auto markets as Africa’s key strengths in the global supply chain.