The Automotive Fund
Within the framework of the AfCFTA, extensive consultations have been held between the AfCFTA Secretariat, Afreximbank and the African Association of Automotive Manufacturers (AAAM), whereby a comprehensive strategy was developed for automotive manufacturing in Africa. The strategy points to an immediate need to finalise the Rules Of Origin (ROO) and the establishment of the Task Force that could fast-track the development of a major advanced automotive value chain in Africa.
The finalisation of the ROO for the auto sector is essential, as it would facilitate strategies in developing regional and continental value chains. It would assist in developing national programmes and allow for greater cooperation and trade between those members who have adopted national programmes and wish to develop trade in vehicles and components under the AfCFTA.
Afreximbank has committed a $1 billion facility to support this objective and funding is available for any investment that seeks to pursue local content development in the automotive value chain. The funding will also be used for ensuring access to consumer finance as part of the creation of demand and associated insurance products.