M a r k e t N e w s

AAAM & Afreximbank have signed An Agreement to Increase Automotive Investment in Africa

Posted on : Tuesday , 6th April 2021

A Memorandum of Understanding (MoU) was signed by the African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) for the financing and promotion of Africa's automotive industry.

In early February, Afreximbank President Benedict Oramah and AAAM President Mike Whitfield signed a Memorandum of Understanding, paving the groundwork for a collaboration. Its aim is to improve regional automotive supply chains and financing, as well as promote the creation of enabling policies, technical assistance, and capacity-building initiatives.

“The strategic partnership with AAAM will promote the implementation of the Bank's automotive programme, which aims to catalyse the growth of the African automotive industry as the continent begins trading under the African Continental Free Trade Area (AfCFTA),” Oramah said.

Afreximbank and AAAM will collaborate to promote the growth of regional value chains under the terms of the MoU. It places a special emphasis on value-added manufacturing, which is accomplished by alliances between global OEMs, manufacturers, and local partners.

In order to facilitate the manufacture of automotive components for supply to hub assemblers, the two organisations intend to conduct detailed studies to map future regional automotive value chains on the continent in regional economic clusters.

They will cooperate to provide funding to industry players around the entire automotive value chain in order to aid the emergence of the African automotive industry. Lines of credit, direct funding, project financing, supply chain financing, guarantees, and equity financing are some of the possible interventions.

They will also work with the African Union Commission and the AfCFTA Secretariat to establish coherent national, regional, and continental automotive policies and strategies, according to the MoU.

African countries are increasingly focusing their attention on supporting the emergence of their automotive industries, thanks to an integrated market under the AfCFTA, plentiful and cheap labour, natural resource resources, and a rising middle class.

The partnership between Afreximbank and AAAM would help African countries achieve their goals of refocusing their economies on industrialization and export manufacturing, as well as promoting the development of regional value chains. 

“The signing of the MoU with Afreximbank is an exciting milestone for the development of the automotive industry in Africa. At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibiters for the growth and development of the automotive industry in Africa and having Afreximbank on board is a game changer and a hugely positive development,” commented David Coffey, CEO of AAAM.

“It is wonderful to have a partner that is as committed as the AAAM to driving the development and growth of our sector on the continent; this collaboration will ensure genuine progress for our industry in Africa,” added Coffey.

Working with the African Union and the African Organization for Standardization to harmonise automotive standards across the continent is another region covered by the MoU, as is creating an automotive-focused training curriculum for both the public and private sectors.

Source : www.exafnz.com
Featured Companies
  • Bajaj Auto
  • Nissens A/S
  • Bajaj Auto
  • Tire Group International, LLC.
  • dubaiexporters.com
  • Steelmate - Think safety think Steelmate

Complete List  

Advertisers in previous issue:

  • Unique Part Trading L.L.C was formed in the year 1984 registered with Dubai Economic Department and Dubai Chamber of Commerce in dealing with the General Trade License to do the Commercial Activities of the Business.
  • Trade Exhibition
  • A truly global provider of quality vehicles.
  • Changzhou Guoshi Vehicle Accessories Co.,Ltd. is proficient in vehicle spare parts manufacturing and has involved a lot of capital, time and resources to make us prominent in this industry.
  • Leading Dealers,Wholesalers & Retailers Specially For Nissan,Toyota & All Japanese Car Genuine Spare Parts.
  • Rolman World is one of the largest and most established distributors of bearings and related technical services in the Middle East and Africa.
  • Wheel bearing / Hub units,Water pump bearings,Deep grove ball bearings;Strut bearings;Heavy duty truck tapers;Tensioner bearings
  • For European Trucks & Engine Parts.
  • GARAGE 1 has been purchasing cars, trucks and jeep in order to recuperate esclusively top quality used complet engines, gearboxes and mechanicals parts.
  • Boston Garage Equipment Ltd is a leading suppliers of a superb range of vehicle workshop equipment.
  • Global Auto Parts is an Automotive Aftermarket spare parts wholesaler offering genuine quality aftermarket replacement parts for all makes and models of passenger cars, light commercials vehicles, trucks and trailers.
  • The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
  • Range,Service,Quality.
  • Fowlers Parts supply genuine original spare parts
  • Lanfeng machine Co., LTD is a collection of R&D, production and sales of Fuel dispenser and LPG dispenser, gas station equipment of large enterprises in China.
  • FM Filter Monza can respond to this need with a wide range of ready or customized filters, manufactured using different technological solutions.
  • DM is one of the leading manufacturer specialized in reflective material in the world, which is only one manufacturer that not only produce personal safety production but also produce traffic safety production in China.
  • JNBK Corporation is a trusted leading manufacturer for top quality brakes with a widest range of products covering main applications for Japan, Europe & Americas.
  • Our products are widely used and serviced for passenger car,truck,tractor,agricultural & earthmoving machines,stationary & marine engine.
  • TOTACHI INDUSTRIAL CO. LTD is an esteemed Japanese company that provides a comprehensive range of lubrication products for commercial and consumer applications.
  • High quality spare parts for truks
  • Product includes Braking, Steering, Suspension, Filtration, Transmission, Cooling, Heating, Electrical, Engine, Lubricants, Chemicals, Wiping, Lighting etc.
  • Mobile Crushing and Screening plant
  • Supplier of vehicles, watercraft & aircraft worldwide.
  • We are producing six categories and nearly one thousand kinds and sizes of bias tyre, OTR tyre, radial tyre, Industrial tyre, agricultural tyre and solid tyre.
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2021 Afrotrade