Accra: The African Continental Free Trade Area (AfCFTA) has been described as a transformative platform capable of unlocking the full potential of Africa's automotive industry. The remarks were made by Mr Jeffrey Oppong-Peprah, Chief Executive Officer of Volkswagen (VW) Ghana, and Mr Themba Khumalo, Representative of the AfCFTA Secretariat, during an executive training programme on automotive industrialisation in Accra.
According to Ghana News Agency, Mr Khumalo emphasized that the agreement creates a single market of approximately 1.4 billion people, with a collective Gross Domestic Product surpassing three trillion dollars, providing the requisite scale to drive industrialisation. He stated that the AfCFTA offers a significant structural opportunity to transform Africa's automotive sector.
Mr Khumalo noted that Africa's dependence on imported vehicles is a policy choice rather than a permanent condition. He explained that the agreement could help overcome market fragmentation and enable manufacturers to achieve economies of scale through regional integration. However, he cautioned that the success of the AfCFTA in the automotive sector would depend on policymakers' understanding of complex issues such as tariffs, rules of origin, and supply chain logistics.
Mr Oppong-Peprah underscored the importance of policy-driven industrialisation, highlighting that successful automotive economies are built on strong government commitment, skills development, and strategic partnerships. He remarked that the automotive industry acts as a key driver of economic development, linking various sectors such as steel, plastics, textiles, logistics, finance, and technology.
He emphasized the critical nature of developing regional value chains, as no single country could efficiently manage all aspects of vehicle production. Instead, he advocated for cooperation among countries to specialise in different segments of the value chain. Mr Oppong-Peprah cited Ghana's Automotive Development Policy as a positive move, noting that it had attracted international manufacturers and positioned the country as a potential regional hub.
He also highlighted the sector's capacity to create jobs, enhance technical skills, and foster innovation across the continent. Nonetheless, Mr Oppong-Peprah acknowledged challenges such as heavy reliance on imports, limited local component manufacturing, infrastructure deficits, and affordability constraints. He called for coordinated action among governments, industry players, and development partners to ensure the benefits of the AfCFTA are fully realised.
'With the right policies and collaboration, Africa can build a competitive automotive industry that serves both regional and global markets,' he concluded.