Historic Memorandum of Understanding signed
The MoU further calls on the EU to enhance its support for the implementation of the African Continental Free Trade Area in view of favouring Africa’s industrialisation and the expansion of the African automotive market.
A memorandum of understanding (MoU) was signed virtually between 12 Automotive Associations within the ambit of the EU – Africa Business Forum 2022 on February 16 with the aim of driving the development of the automotive industry in Africa.
The launch of the African Continental Free Trade Area gives a boost to pan-African trade and investments opportunities, especially for the automotive industry and creates the momentum to stimulate a European-African dialogue between policy makers and important stakeholders.
The MoU encourages enhanced dialogue contributing to the development of a joint plan to grow the automotive sector in Africa, through integration into the global and European value chains resulting in quality jobs.
The MoU commits the 12 organisations to work jointly on seven key priorities, which are:
• The setting-up of a permanent round table between the AU, EU, and industry associations in line with the spirit of an established European-African Business Network that will foster the dialogue between Africa and Europe.
• To request the EU and African countries governments to pursue trade initiatives through the implementation of existing agreements to increase business opportunities and further expand EU-Africa trade in automotive products.
• It also commits to advance the integration of African companies into the global value chains and to support the building of the necessary infrastructure and logistics. This will include investment and growth opportunities provided for EU companies partnering with African companies and will result in supply chains being more easily accountable.
• The MoU further calls on the EU to enhance its support for the implementation of the African Continental Free Trade Area in view of favouring Africa’s industrialisation and the expansion of the African automotive market.
• Importantly the MoU calls for governments to support knowledge transfer, provide financial resources and give political priority in establishing a pan-African production and trade system that will reinforce and expand existing African automotive value chains.
• Lastly it encourages the EU to support financially the development of sustainable and smart mobility and affordable vehicle financing solutions to increase the mobility of the population in African cities and support therefore infrastructure development.
Commenting after the signing of the MoU, David Coffey the CEO of AAAM said, “The trade and investment climate in Africa can only be improved together. We are convinced that Africa has great potential to develop a promising automotive industry that will provide long-term employment. The fact that African and European associations have agreed on key points to further develop the industry on the continent is an important milestone. Now political representatives are to support this by creating the framework conditions for the industry to develop and grow.”
Signatories of the MoU are: African Association of Automotive Manufacturers /German-African Business Association (Afrika-Verein der deutschen Wirtschaft)/German Association of the Automotive Industry /Kenya Association of Manufacturers/Tunisian Automotive Association/National Association of Automotive Component and Allied Manufacturers, South Africa/National Association of Automobile Manufacturers of South Africa /European Association of Automotive Suppliers /European Business Council for Africa/European Automobile Manufacturers’ Association /Nigeria Automotive Manufacturers Association /Automotive Assemblers Association Ghana.
Source: QuickPic
