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Ethiopia's Automotive Industry
folder_open Automobiles Sector , East Africa
Ethiopia is among Africa’s most impressive growth performers over the past decade averaging 10.9% annual growth between 2010 and 2020. With a GDP of US$91 billion in 2019 it is among the top ten largest economies in Africa and the third largest in Eastern Africa.
Before the end of next year, Morocco officials hope to announce the name of a third global automaker to build an assembly plant there. The unnamed manufacturer would launch production in the North African kingdom in 2021 or 2022, according to Khalid Qalam, senior adviser with Invest in Morocco.
Formed in 2015, the Africa Association of Automotive Manufacturers (AAAM) works specifically to promote and facilitate the growth of the African automotive industry. Formed by executives from the world’s biggest car manufacturers, the African Association of Automotive Manufacturers (AAAM) embarked on a concerted push to revive and resurrect Africa’s auto industry. Since then, the newly-created African Association of Automotive Manufacturers (AAAM) has been working with key African governments to create the right policy environment for the sector to ?ourish.
Tanzania is adopting tough measures to check the the inflow of substandard lubricants into the country. Tanzania is an important market for lubricants in Africa.
The automotive manufacturing industry in Africa is growing fast. Automotive production in Africa is growing industry as more and more manufacturers move closer to their African customers and discover the advantages of low-labour costs and tax holidays. Demand for automobile spare parts in Africa is also growing. The automotive production industry in South Africa is nearly 100 years old. In the 1980s and 1990s, Nigeria achieved significant production and production occurs in Egypt and more recently Morocco. Smaller production activities take place in Kenya and some decades ago in Zimbabwe. However, currently significant modern assembly is largely located in South Africa.
East African countries could ban imports of used clothes and second-hand cars in the next three years, putting an end to a lucrative trade in the region. The EAC directed member countries to buy their textiles and shoes from within the region with a view to phasing out imports by 2019.