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- The Intra-Africa Trade Fair (IATF 2021) to be held in December this year will have a special focus on Africa’s automotive industry and its potential to drive industrial growth
- Africa is increasingly becoming a hub for global automobile companies. Global companies are focusing o0n countries like Angola, Ethiopia, Ghana, Kenya, Namibia, Nigeria, Rwanda, South Africa etc
- These countries have attracted large scale investments from global automobile companies. They have set up their bases particularly in the sub-Saharan Africa
The Intra-Africa Trade Fair (IATF 2021) to be held in December this year will have a special focus on Africa’s automotive industry and its potential to drive industrial growth. Africa is increasingly becoming a hub for global automobile companies. Global companies are focusing o0n countries like Angola, Ethiopia, Ghana, Kenya, Namibia, Nigeria, Rwanda, South Africa etc. These countries have attracted large scale investments from global automobile companies. They have set up their bases particularly in sub-Saharan Africa.
The demand for vehicles is slowing down in developed countries and in emerging economies including SA. The upcoming economies provide considerable scope for sale of vehicles since there is a large pent up demand for automobile items. Original Equipment Manufacturers (OEMs) in this case car makers have subsidiaries to produce global models that incorporate components to assemble at sites. Africa is considered a frontier market. The continent’s markets are distorted with the import of used vehicles. However, the emerging middle class is buoyant of the new vehicle models.
Analysts point to two problems affecting African markets, such as lack of finance facilities due to the absence of consumer credit data and the other the proliferation of many scattered smaller economies. With the formal launch of the African Continental Free Trade Area, it is anticipated that this will mean integration of the regional economic communities into a single bloc and the advantage of a large, single market. The Show -IATF 2021- will have a dedicated Auto Exhibition, an Automotive Workshop and a B2B/B2G for the Automotive Industry.
