Africa’s vehicle demand could rise to between 3.5 million and 5 million units annually by 2035, creating significant opportunities for automotive manufacturing, component production and regional trade.
The outlook was highlighted at the Focus Africa Automotive Investment Forum in New Alamein, Egypt, where Egyptian Minister of Investment and Foreign Trade Mohamed Farid Saleh called for Africa’s manufacturing potential to be converted into bankable investments and integrated regional supply chains.
Africa currently produces about 1.2 million vehicles annually, according to Farid. He said the anticipated growth in demand presents an opportunity to expand production within the continent while increasing the use of locally manufactured components.
The African Continental Free Trade Area (AfCFTA) automotive rules of origin are expected to support this development by requiring at least 40% African content. The framework is intended to encourage deeper localisation, supplier development and greater intra-African trade in vehicles and components.
Farid also highlighted African Export-Import Bank’s commitment to allocate $1 billion towards financing the continent’s automotive industry. He said the priority now is to move beyond policy development and accelerate investment by strengthening supplier networks, aligning customs procedures and connecting businesses with appropriate sources of finance.
Standardised testing and accreditation requirements will also be important for enabling vehicles and components to move more efficiently between African markets. Harmonising these systems could reduce technical barriers and support the development of integrated regional automotive supply chains.
The transition to electric vehicles is another major consideration. Farid said electrification requires more than vehicle assembly, pointing to the need for battery manufacturing, charging infrastructure, technical skills and supporting industries to develop alongside EV production.
Egypt is positioning itself as an important automotive manufacturing hub through its National Automotive Industry Development Program. The programme aims to attract international manufacturers, strengthen local component production and increase exports through performance-linked incentives, with greater emphasis on technology transfer and supplier development.
The forum also marked the launch of the Egyptian-South African Business Council. The council is expected to support stronger industrial cooperation between the two countries, including joint manufacturing initiatives and connections between businesses and wider African value chains.
With demand expected to expand significantly over the next decade, Africa’s automotive sector is increasingly being positioned as an area for industrial investment, regional integration and export growth.