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The last frontier: prospects and policies for the automotive industry in Africa

Author

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  • Anthony Black
  • Thomas McLennan

Abstract

Since the turn of the century, sub-Saharan Africa (SSA) has grown very rapidly and the expansion of the middle class is evident in the surge of demand for vehicles albeit from a very low base. The first part of the article quantifies the rapid growth in vehicle sales, which is being met mainly by imports, especially of used cars. Outside of South Africa, domestic production is minimal and the article goes on to consider the question of whether and how the region can begin to meet this booming demand by developing its own industry. The level of industrialisation in most parts of SSA is low and manufacturing capabilities are limited. Nevertheless, a number of the larger countries, for example Nigeria and Kenya, are putting policies in place to encourage domestic production. Small scale investments in assembly are underway. To make the most of this opportunity, African countries will need to adopt appropriate policies and also accelerate the process of regional integration to allow for sufficient market scale.

Suggested Citation

  • Anthony Black & Thomas McLennan, 2016. "The last frontier: prospects and policies for the automotive industry in Africa," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 16(2), pages 193-220.
  • Handle: RePEc:ids:ijatma:v:16:y:2016:i:2:p:193-220
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    Citations

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    Cited by:

    1. Black Anthony & McLennan Thomas & Makundi Brian, 2017. "Working Paper 282 - Africa’s Automotive Industry Potential and Challenges," Working Paper Series 2412, African Development Bank.
    2. Egwakhe A. J. & Amos N. B. & Nicodemus T., 2021. "Can Technology Transfer Stimulate Labour Productivity: Experience from Nigeria Automobile Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(4), pages 1-1, July.
    3. Kudłak, Robert & Kisiała, Wojciech & Kołsut, Bartłomiej, 2024. "Systemic transformation, political reforms and car ownership in Poland," Journal of Transport Geography, Elsevier, vol. 117(C).
    4. Karishma Banga & Neil Balchin, 2023. "Linking Southern Africa to South Africa's exports: New opportunities for regional value chains," The World Economy, Wiley Blackwell, vol. 46(2), pages 346-362, February.

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