The Auto Industry in Sub Saharan Africa: Investment, Sustainability and Decent Jobs - IndustriALL/FES Report Launch
While much attention has been paid to the lack of structural transformation or to processes of premature deindustrialisation, a number of Sub Saharan African countries have actually made important steps in the development of a manufacturing sector, and have attracted increasing investment towards an emerging auto industry.
The report presented here, outcome of a project launched by IndustriALL and FES/TUCC, focuses on seven countries that have either experienced a flourishing automotive sector or that show promising prospects of future expansion: Ghana, Ethiopia, Kenya, Namibia, Nigeria, Rwanda and South Africa.
Although structural weaknesses persist (poor infrastructure, uneven distribution of skills, lack of real market integration, etc.) these seven countries have all demonstrated a commitment to grow the industry by implementing targeted policies and establishing partnerships with big auto players. Overall, the auto industries in these seven countries reveal significant potential to attract future investment and to further expand.
For sustainable growth, however, important policy challenges must be addressed. Localisation and supply chain development emerge as key priorities. In addition, issues related to urban mobility and environmental sustainability also come up as increasingly pressing matters. The most compelling objective, however, remains the creation of more decent jobs. It is therefore urgent to intervene in order to expand employment opportunities and secure quality occupations.
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