Africa’s automotive industry could attract increased investment as countries move towards implementing the 40% automotive Rules of Origin under the African Continental Free Trade Area (AfCFTA), creating opportunities to expand regional manufacturing, strengthen supplier networks and increase intra-African trade.
Tarek Mosaad, President and CEO of Hyundai Motor Company Middle East & Africa and President of the African Association of Automotive Manufacturers (AAAM), highlighted the opportunity while speaking at the Africa Automotive Investment Forum 2026. He called on governments and industry players to turn policy commitments into manufacturing capacity, job creation and stronger regional trade.
Mosaad said Africa’s automotive ambitions would depend on how quickly countries could translate agreements into factories, local suppliers and integrated production networks.
He identified three priorities for advancing the sector: developing regional automotive supplier value chains, reducing barriers to cross-border trade, and investing in future mobility technologies, including electric vehicles, battery manufacturing and charging infrastructure.
The implementation of AfCFTA’s automotive Rules of Origin is expected to play an important role in encouraging regional production. By establishing requirements for qualifying vehicles and components to benefit from preferential continental trade arrangements, the framework could encourage manufacturers to source more inputs from African suppliers and expand production across multiple markets.
South Africa, one of the continent’s established automotive manufacturing and export centres, could benefit from deeper integration with regional suppliers and new investment opportunities. The planned Egypt-Southern African Customs Union (SACU) Business Council is also expected to promote trade, investment and industrial cooperation between the two regions.
During the forum, the AAAM and AfCFTA signed a memorandum of understanding aimed at advancing cooperation on automotive industry development. According to Mosaad, the agreement has led to a joint action plan that includes appointing a dedicated Rules of Origin expert, establishing a three-year skills development programme and developing a continental supplier database.
These initiatives are intended to strengthen technical expertise, improve access to supplier information and support the practical implementation of regional automotive trade policies.
Mosaad said investors were looking for an integrated African market rather than 54 separate national markets. He emphasised that policy certainty, reliable infrastructure and stronger cooperation would be essential to developing Africa into a globally competitive automotive manufacturing hub.
As implementation progresses, the sector’s ability to attract investment will depend on coordinated policies, cross-border infrastructure, skills development and the establishment of competitive regional supply chains. Greater integration could help African countries capture more value from vehicle and component production while expanding industrial employment and trade across the continent.