Driving Africa’s Automotive Future Through Regional Value Chains and Trade
Moving from Policy to Execution: Industry Leaders Call for Accelerated Implementation of AfCFTA Automotive Measures
Africa’s automotive industry is well positioned to attract new investment as the continent advances implementation of the 40% automotive Rules of Origin under the African Continental Free Trade Area (AfCFTA), according to Tarek Mosaad, President and CEO of Hyundai Motor Company Middle East & Africa and President of the African Association of Automotive Manufacturers (AAAM).
Speaking at the Africa Automotive Investment Forum 2026, Mosaad called for a stronger focus on implementation, urging governments and industry to translate policy commitments into manufacturing, jobs and intra-African trade.
“The question is no longer whether Africa can build an integrated automotive industry but how quickly we can turn commitments and policies into factories, suppliers, jobs and tangible trade,” said Mosaad.
Mosaad highlighted three priorities to accelerate the continent's automotive transformation: expanding regional supplier value chains, removing barriers to cross-border trade, and building capabilities in future mobility technologies such as electric vehicles, battery manufacturing and charging infrastructure.
For South Africa, one of Africa’s leading automotive manufacturing and export hubs, implementation of AfCFTA presents significant opportunities to deepen participation in regional value chains. The upcoming Egypt-SACU Business Council is also expected to support stronger trade, investment and industrial cooperation between the regions.
Mosaad welcomed the signing of a Memorandum of Understanding (MoU) between AAAM and AfCFTA during the forum, noting that it has resulted in a joint action plan focused on implementation, including a dedicated Rules of Origin expert, a three-year skills development programme and a continental supplier database.
“Investors are not looking for 54 separate markets, but one integrated opportunity. When Africa provides the right policy certainty, infrastructure and cooperation, it has the resources and capabilities needed to become a major global automotive manufacturing hub.”
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