An agreement has recently been signed between the African Import-Export Bank (Afreximbank) and the African Association of Automobile Manufacturers (AAAM). This agreement aims to stimulate investment to create a strong regional industry within the continental free trade zone (Zlecaf).
Some of the points contemplated in the agreement are multiplying lines of credit, direct financing, financing of the supply chain, guarantees or capital financing, among others, for the benefit of automobile manufacturers active in the continent.
The two organizations will jointly carry out in-depth studies with the aim of mapping possible regional automotive value chains that, in particular, would promote increased skills of local assemblers.
Both organizations have pointed out that the help of the different participating African states will be key to the proper development of the agreement. Some governments such as South Africa, Morocco, Rwanda or Ghana are already strategically very advanced, but Afreximbank and AAAM believe that this trend should be generalized.
Consequently this association also plans to encourage and support governments in the implementation of \”coherent national, regional and continental automotive policies and strategies.\”